Although not as strong as in August, September's furniture and flooring sales remained encouraging despite reaching a period of tougher comparatives, with some retailers seeing increased demand for fitted furniture, reports the BRC/KPMG sales monitor.
In the online arena, most retailers were satisfied with their online sales growth for furniture and flooring in September. Although growth was lower than in August, demand for big ticket items was stronger than it has been for a while, perhaps reflective of a pick-up in the housing market. The penetration rate advanced to 31.7% in September, more than a percentage point higher than a year ago.
The report found that UK retail sales altogether were up 0.7% on a like-for-like basis from September 2012, when they had increased 1.5% on the preceding year. On a total basis, sales were up 2.4%, against a 3.4% increase in September 2012 and in line with the 12-month moving average. The growth was driven by electricals and leisure goods, while food experienced a decline in like-for-like sales.
David McCorquodale, head of retail, KPMG, says: “These figures are a reality check and will make retailers nervous as we enter the run-up to Christmas. Unseasonably warm weather stifled sales of autumn and winter collections in September, and the recovery in home-related items flattened. Consumers are still cautious about spending and are reluctant to restock their wardrobes with winter woollies until the weather cools.
“The stark fact is the retail recovery remains fragile, and in the lead-up to Christmas retailers, who are generally carrying less stock than in prior years, will need to manage promotional activity carefully to maintain margins.”
