Paul Martin, Head of Retail at KPMG UK, comments on the latest Office of National Statistics (ONS) retail sales figures for the month of May.
Commenting on the latest Office of National Statistics (ONS) retail sales figures for the month of May, Paul Martin, UK Head of Retail at KPMG, said:
“The latest figures from the ONS further illustrate how inflationary pressures are thwarting retail sales. Shoppers are notably clawing back on discretionary spend – like fashion and home gadgets – in order to accommodate the higher pricing of non-discretionary items, like food.
“Whilst the top-line figures still point to slight growth, the direction of travel is painfully obvious, and weighing retail performance down like a lead balloon is the significant decline in non-food sales.
“These are challenging times for retailers – both food and non-food alike. Grocery stores have noted the biggest increase in pricing since late 2013, whilst non-food stores have noted the biggest increase since late 2011. Whilst it might be tempting for retailers to cut prices in order to boost sales, their margins are already under significant pressure, so the focus for survival really lies in increased efficiency.”
Notes to editor:
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