Retailers struggle to make headway in 2017 | KPMG | UK

Retailers struggle to make headway in 2017

Retailers struggle to make headway in 2017

Commenting on the latest Office of National Statistics (ONS) retail sales figures for the month of March, Paul Martin, UK Head of Retail at KPMG, said:

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“Retailers have clearly struggled to make headway in 2017, with the latest ONS data outlining the first quarterly decline in retail sales since 2013. Of course, the later Easter will have played a part in distorting performance, however the figures also point to the broader underlying issues that are facing the industry – including increased input costs.

“Prices at the petrol pumps and supermarket check-outs are certainly having an impact on shopper’s spending habits. In fact, the amount spent by consumers increased 5.1% compared to the same period last year, with rising inflation starting to influence prices. Meanwhile the quantity bought continues on a downward course, as it has since the beginning of the year. 

“It is not all doom and gloom though, fashion retailers benefitted from a recent increase in sales – bucking the overall trend. It’s likely the milder weather will have prompted shoppers to peruse the new season’s collection, whilst e-Promotions also appear to have worked their magic. Online textile, clothing and footwear sales noted a whopping 28.1% boost compared to the same period last year.  

“With a disappointing start to the year overall, it is critical that retailers succeed at turning the tide on performance in the coming months. Whether Easter proved a success or not remains to be seen. The focus now should be on improving margins through increased efficiency, whilst at the same time making the most of the bank holidays ahead.”

 

-ENDS-

 

Notes to editor:

For further information please contact:

Simon Wilson, KPMG Corporate Communications

T: +44 (0) 207 311 6651
M: +44 (0) 778 537 3397
E: Simon.wilson@kpmg.co.uk

 

KPMG Press office

Tel:  +44 (0) 207 694 8773

 

About KPMG 

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff.  The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.  

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