Online Sales Continue To Grow - BRC

The latest BRC online retail sales monitor report says that online sales have continued to grow on last September. Non-food products grew by 13.4% on last year. Online sales accounted for 17.5% of total non-food sales.

The importance of online sales in some sectors shows as clothing and footwear would have shown a decline in September if not for the online facility. Online sales growth was slower than in August but still impressive given the strong growth of last year.

Sales Monitor 3% More Than Last Year

UK retail sales were 3% up on May last year according to the BRC Retail Sales Monitor. Sales were also up 0.8% on a like-for-like basis. Over the quarter food was up 3.3% on the total basis and 1% like-for-like and non-food 3.5% and 1.3% respectively. All categories indicators for the quarter were 1.2% like-for-like and 3.4% in total.

In the non-food sector, the sunny weather helped outdoor, DIY and leisure as well as footwear and clothing. Consumer uncertainty about job and income prospects meant many items struggled even with discounts and promotions. Internet, mail order and telephone sales were 21.9% higher than a year ago after 15.9% in April. Food sales were improving after April.

The Director General of BRC said the World Cup has helped to increase the sales of televisions and that should continue as it gets closer and football merchandise sales should increase. Despite the uncertainty consumer confidence has gone up since last year.

The Worst January Sales Growth For 15 Years

Retail sales got off to a bad start in 2010 with a like-for-like fall of 0.7% in January 2010 compared with the 1.1% rise in January 2009. On a total basis, January sales in 2010 reported an increase of 1.2% compared with the 3.2% of January 2009.

The weather was a factor as snow seemed to affect shoppers. Food sales went up in the first week of January while non-food sales suffered, especially discretionary items. Food sales slowed down and non-food sales improved slightly as the weather got better.

Internet, mail order and telephone sales were 14.6% higher in January 2010 than January 2009 and 26.5% in December. The snow may also have been a factor in the improvement of online sales. There was growth in the number of new online customers. Non-store retailing is the fastest growing sector but it still only accounts for 4% of total sales.

December Sales Higher Than Expected

December retail sales rose 4.2% on a like-for-like basis compared with December 2008 when the financial crisis had a negative effect on consumer confidence. Sales also rose by 6% on a total basis as against 1.4% last year.

Food sales were their strongest since July due partly to food price inflation. Non-food stores were 26.5% higher than last year with 16.9% in November. Online sales may have been helped by bad weather preventing people getting out.

Food Inflation Decreases Food Sales

The value of retail sales increased by 2.8% like-for-like from September 2008 partly due to the Bank Holidays falling in the September period this year according to the British Retail Consortium (BRC) Retail Sales Monitor for September. There was a further slow down in food sales due to food inflation. Other sectors that increased were clothing and footwear and homewares and furniture sales due to an increase in consumer confidence and the housing market. Internet sales of non-food goods helped achieve a figure of 11% higher than a year ago in September and 7.9% compared with August.

The BRC Shop Price Index stayed deflationary for the second consecutive month. Shop prices fell 0.1% in September year-on-year. Food inflation increased to 2.5% from 2.3% in August. On the monthly basis the index remained flat.