Partner Article

Cold snap impacts non-food sales

Retail sales were estimated to have decreased by 0.5% in March, as the cold weather appears to have impacted non-food sales, say the Office for National Statistics.

The quantity of non-food goods bought fell by 2.6% as feedback from department stores, clothes stores and household stores indicated pre-spring season sales were impacted by snow.

The amount spent across retailers actually increased by 0.1% year-on-year, with food and non-store retailing sectors fuelling this.

Deloitte’s Andy Coticelli said: “Today’s figures reflect a disappointing Easter performance. The industry hoped for a strong annual increase in sales, given the Easter break fell in March this year as opposed to April in 2012. In particular, the fashion sector suffered due to the prolonged winter weather. Spring/Summer collections were left out in the cold as consumers delayed seasonal purchases.

“Food retailers fared better as they capitalised on Mother’s Day and Easter celebrations. Those retailers with a strong online presence also reaped the rewards. Footfall fell as consumers opted to avoid the chill and shop from the comfort of their own home. Certainly, the weather highlighted the importance for retailers to have a nimble and responsive supply chain structure in place. The ability to adapt product offerings according to customer demand is crucial as unpredictable weather patterns become increasingly prevalent.”

Peter Saville, partner at advisory and restructuring firm, Zolfo Cooper, said: “The results are disappointing, but unsurprising. The prolonged cold weather has certainly taken its toll on the UK high street and has further discouraged consumer spending.

We are now well into 2013 and many retailers, who have invested heavily in their online offerings and store experience, will be hoping their efforts will soon pay off. A rise in consumer confidence would be welcomed by retailers keen to turn around this stagnant trend.“

This was posted in Bdaily's Members' News section by Tom Keighley .