High street sales grew by 2.6 per cent on a like-for-like (LFL) basis in July with fashion retailers reporting the strongest growth year-on-year, new research has revealed.
Compared to the same month last year trade at fashion stores jumped 3.7 per cent, largely thanks to continued promotional activity in this sector, according to the latest High Street Tracker created by industry analysts BDO.
Online sales were also strong during the month, up 39.9 per cent, but tough trading conditions remained for many bricks and mortar retailers, with homewares stores reporting a 2.1 per cent drop in sales year-on-year.
Don Williams, National Head of Retail and Wholesale at BDO, said that retailers who are doing best at present are those with a strong multichannel, customers service and discount led offer.
He commented: “The retailers doing this can have the confidence to continue investing in their multichannel offering and on quality retail sites in the best locations.
“Many of these sales have been boosted through discounting. What long-term effect this has on margins is a story yet to be told.”
Non-fashion sales rose 1.1 per cent in July but the volatility of the market was demonstrated by the strong 3.2 per cent growth seen in week one of the month compared to a 1.4 per cent decline recorded in the following seven days.
July’s sales data shows the second month of growth in trading after a disappointing May, but this time last year sales were growing by 5.2 per cent year-on-year and it is clear that with prices currently being slashed so much times are not easy for most shops on the high street.