Department stores boost retail sales

Retail sales volumes increased 0.2% in June, continuing a period of underlying growth.

The rise was partly driven by department store sales and clearance promotions across a wide range of products.

In the same period the prices of goods sold rose from 1% to 1.7% compared with June 2012. The average weekly spend across retailing was £6.9bn in May 2013, up from £6.8bn in June 2012.

Supermarkets’ food sales volumes declined marginally while non-food stores grew 0.6%.

Richard Lowe, head of Retail & Wholesale at Barclays, said: “Summer has arrived, and with it the high street is benefitting from consumers eager to get a bargain for their holidays. Department stores are doing particularly well, and sales of clothes and holiday-friendly electronics such as Kindles, iPads and Nooks are proving popular.”

Bill MacLeod, partner, PwC Newcastle, said: “ONS figures show a slight uplift for retail sales through June driven by warmer weather and goods sold on promotion. This has particularly boosted high street sales with department stores gaining from consumers ‘one stop shopping’ bargains across departments. “Our figures support this as an on-going trend through July. This week showed that 85% of 100 high street retailers were on sale or advertising promotions in their shop window. This is comparable to the same time last year and 2011 - 86% and 85% respectively. It was 60% in 2010 and 80% was seen in 2009 in the aftermath of the financial crisis.

“Average price discounts however are up to 59%, compared to 55% in 2012 and 2011 – but still well below the 70% of 2009.

“So sales are good, boosted by the warm weather giving both retailers and consumers reasons to celebrate.”

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