Commenting on the Office of National Statistics retail sales figures out today
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”.
Notes to editor:
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