Retail sales are no picnic, as consumers feel the pinch | KPMG | UK

Retail sales are no picnic, as consumers feel the pinch

Retail sales are no picnic, as consumers feel the pinch

Commenting on the Office of National Statistics retail sales figures out today

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Commenting on the Office of National Statistics retail sales figures out today, Don Williams, Retail Partner at KPMG UK, commented:

“The latest figures point to slight growth but it is vital to remember that this is being driven mainly by strong food sales. In fact, all other categories except household goods stores noted a decline. This is far from a picnic and simply points to further evidence of wavering consumer confidence and tightened purse strings, against a backdrop of inflation and uncertainty.

“Retailers will be weathering this storm with varying success. Food stores may appear to be the winner, with the most apparent growth, but in truth the whole industry is battling a number of other elements in the form of cost increases elsewhere.

“For non-food retailers, who noted a decline in July, the key to standing strong will be making their products and services essential to shoppers. Moreover, these sorts of conditions tend to enhance the polarisation of shopping behaviour, with shoppers looking more closely to luxury brands and discounters, whilst the middle market is overlooked. In the coming months, positioning will be a key priority for retailers”.

-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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