Bargain hunters came out in force last month to give the UK high street a boost, latest figures from accountancy and business advisory firm BDO LLP has revealed.
BDO’s monthly High Street Sales Tracker (HSST) recorded a 1.4 per cent growth in year-on-year sales for January.
The data is welcome news for the industry after BDO’s December figures recorded the worst Christmas trading figures on the high street since 2008, down 5.3 per cent on a year-on-year basis.
With December stock to shift, retailers managed to attract bargain hunters in the traditional January sale period.
Fashion sales were particularly strong, recording a year-on-year rise of 1.9 per cent for the month. The lifestyle sector increased sales by 0.3 per cent and homewares sales grew by 0.8 per cent. Non-store sales rose by 20.2 per cent compared to the same period last year.
Speaking on the results, Sophie Michael, head of retail and wholesale at BDO, “The lull between Black Friday and the January sales was particularly noticeable at the end of 2015 and beginning of 2016,” she said.
Retailers might be getting better at attracting the new generation of savvier shoppers in discounting periods, but margins will suffer unless they sell full-price stock too, she added.
“The strong retail performers demonstrate that consumers are willing to pay full price if they see a desirable product. The stores that will thrive in 2016 will be the ones who combine a strong customer service proposition with an attractive brand and a compelling product mix.”
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