Homeware total LFLs fell by -8.8% in June from a base of +22% for the same month last year, reports the latest BDO High Street Tracker.
June marked the third negative result for total homeware LFLs this year. Non-store LFLs were in the red throughout the month.
In-store LFLs for homeware decreased by -1.9% this month from a base of +77.9% last year. Despite starting the month well (+8.70%), in- store LFLs for homeware began to falter from the second week onwards.
June is now the second consecutive month of negative LFLs for in-store homeware.
"LFL growth slowed again in June continuing a downward trend which began in April," states the tracker. "As soaring inflation and falling real wages impact consumers, the squeeze on household finances could begin to stifle retail spending.
"The deceleration of sales in June may point to rising caution amongst consumers who have already reduced spending on essential items and will likely be reconsidering major purchases. For example, homewares appear to have taken the hardest hit as reflected by the category’s negative performance throughout June. With recent reports indicating that consumer confidence has dropped to all-time lows coupled with pressures on disposable income, discretionary spending is likely to see further restraint in coming months. Cost pressures and supply issues faced by retailers, alongside plunging consumer confidence, suggest that retailers and consumers are likely to face a challenging second half of the year."
