The UK retail industry is said to have made moderate gain in sales during June 2009 over the corresponding month a year ago on account of summer clothes and outdoor items.
The British Retail Consortium said that the retail sales in the UK picked up momentum during June 2009 on sunny weather conditions, as reported by RTTNews.
The total retail sales recorded an increase of 0.8% in June 2009 over the same month previous year to grow at 3.2%. Same store-sales also grew 1.4% after declining 0.8% in May 2009. Besides, food sales soared 5.4% in the three months' period ended June 2009 over the same period last year as shoppers purchased items for picnics, barbecues and salads.
Sunny climate in the month of June helped the retail industry to accelerate growth pace and the heat wave fueled the demand for outdoor goods such as garden furniture, picnic and pool ware. Besides, stock clearance sales by retailers nicely coincided with high demand for summer clothes that ultimately benefited the retail sales. The month of June also saw heavy demand for swimming costumes, summer garments, children wear along with sunglasses.
However, high price tag items such as home wares and furniture saw slump in sales since the fear of job loss looming large on minds of consumers who restrained from investing in expensive and non-essential items.
In a reaction to falling inflation, retailers have cut down prices of certain items in order to give fillip to volume sales. The Office for National Statistics showed that the consumer prices index (CPI) plummeted below 2% for the first time after September 2007.
While the sales figures for the month of June were quite encouraging, the BRC is still cautious to make statement on the end of UK retailers' woes. It is said that uncertainty of jobs would keep big ticket purchase at the back seat.
According to a Research Analyst at RNCOS, "With hot weather conditions boosted demand for outdoor items and summer clothes, the British retail sales moved upward in June 2009. However, the movement of retail industry in coming months is likely to be uncertain as the British economy is shrinking and unemployment rate is high. Hence, the retail market will see slow growth rate in future, primarily driven by low and necessary purchases."
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