SALES IN UK TOWNS AND CITIES STRENGTHENED IN AUGUST, PARTICULARLY IN KEY SECTORS, WHICH IS LIKELY TO HAVE BEEN SUPPORTED BY AN IMPROVEMENT IN THE WEATHER
According to Diane Wehrle, of Rendle Intelligence and Insights & Beauclair’s Brand Ambassador.
August delivered some better news for UK towns and cities, with overall sales strengthening to an annual drop from 2023 of -3.1%, versus -9.3% in July. The improvement in overall sales was driven by a stronger performance in all three metrics of customer numbers, transactions and average transaction value. Transactions and customer numbers were -2.6% and -3.0% below the August 2023 level, whilst average transaction value recorded an even greater improvement to just -0.5% below 2023 versus -2.5% in July.
Significantly, across the five sectors that account for 85% of sales in towns and cities (Fashion, Food & Drink, General Retail, Grocery and Health & Beauty) sales were just -1.8% lower than in August 2023, compared with a drop of -7.4% across these five sectors in July.
The key change between July and August was a marked improvement in the weather across the UK, and this is likely to have supported sales, particularly as there were significant improvements in Fashion and Food & Drink which both typically deliver strong results during the summer period. In August Fashion sales were just -1.4% below 2023 compared with -11.9% in July when much of the weather across the UK was cool and rainy, and likewise Food & Drink sales in August were just -0.7% below 2023 versus -9.6% in July.
At the same time, however, Household sales (including large ticket items) in towns and cities still languished in August at -32.5% below 2023, following an annual drop of -31.3% in July and an average annual decline of -33.9% between January and July 2024.
As we move towards the end of Q3 it is likely that sales will dip from August to September which is an historic month on month trend. However, a key question is whether the improved annual performance recorded in August will continue into September. In September 2023 sales in towns and cities rose by +1.5% from 2022. With the improved economic picture, it is hoped that sales in September 2024 will rise by a further +0.5%, as compared to 2023.
The table above shows the average performance of a 62 towns and city centres, across a range of key Retail Spend metrics.