According to the BDO High Street Tracker for the month of September, total like-for-like (LFL) sales grew by 4.7% in September, up from a base of 0.2% for the same month last year. Store sales increased by 1.8%, compared to a base of 1.0% in 2023, while non-store sales enjoyed double-digit growth, rising 11.6% from a relatively flat base of 0.1% last year.
Photo: Dreamstime.
In the first week of September, LFL sales fell by -1.79% from a base of 3.40% for the same week in 2023. In week two, sales grew by 15.95% from a negative base of -4.21% for the same week last year. Strong year-on-year growth continued into week three, with LFL sales climbing by 14.45%, again from a negative base of -3.44% for the same week in 2023. In the penultimate week of September, sales dropped by -3.87% from a base of 5.51% for the same week last year. In the final week of the month, LFL sales grew by 2.59%, failing to offset a negative base of -4.93% for the same week in 2023.
For Homeware, total LFLs declined by -2.5% from 0.2% last year, with in-store sales up 5.8% and non-store sales down 9.0%.
This month, the UK experienced mild weather overall, reflecting a typical September mix of summer and autumnal conditions. The month featured a blend of sunshine and showers, with northern England facing heavier rainfall and localized flooding. Scotland and Northern Ireland were cooler, while southern England remained warmer and drier. This unpredictable weather may have impacted footfall, which was low for much of the month. Retail parks, however, experienced the strongest growth in traffic, seeing significant increases in the first three weeks before dipping into negative territory in the final week.
September's overall LFL result marks the sixth consecutive positive outcome and the strongest result since February 2023. While this month's performance was particularly driven by strong non-store sales, bricks-and-mortar retailers achieved one of their best results so far this year.
Several interconnected factors may have influenced this month's results: weather conditions, rising consumer confidence, retailer discounting, and a rebound in online shopping, all of which highlight the ongoing struggles faced by high street traders.
Warmer-than-expected early autumn weather likely boosted clothing and lifestyle sales, further invigorated by widespread end-of-season and new-season sales and discounts. The mixed weather may also have contributed to the strong non-store sales result, reflecting the trend of consumers shifting towards online shopping and the continued demand for buy-now, pay-later services.
Rebounding consumer confidence may have also played a role in September's results. Recent consumer confidence metrics reported the best outcome since January 2022, showing growth across all sub-indexes, indicating that consumers are generally more optimistic about their personal and national economic outlook. However, against a backdrop of high interest rates, rising consumer debt and lower-than-forecast economic growth, household budgets remain tight. Retailers will be under pressure as we approach the festive season.
More information:
BDO
www.bdo.co.uk