Latest news with #BRC-KPMG
The Herald Scotland
5 days ago
- Business
- The Herald Scotland
Retail spending heats up in June due to warm weather
The monthly BRC-KPMG retail sales monitor revealed that total UK retail sales increased by 3.1% in June year-on-year, compared with a 0.2% in the same month a year earlier. This was also particularly buoyed by an increase in food sales, which grew by 4.1% for the month on the back of accelerating price inflation. Recent figures from the trade group showed that food inflation increased to 3.7% in June, while fresh food was 3.2% more expensive than a year ago. The BRC found that non-food sales increased by 2.2% in June, with similar rates of growth across online and in stores. Helen Dickinson, chief executive of the BRC, said: 'Retail sales heated up in June, with both food and non-food performing well. 'The soaring temperatures increased sales of electric fans while sports and leisure equipment was boosted by both the weather and the start of Wimbledon. 'Food sales remained strong, though this was in part driven by food inflation, which has risen steadily over the course of the year.' Linda Ellett, UK head of consumer, retail and leisure at KPMG, said: 'Home appliances and homeware purchases helped retail sales to grow in June, as new homebuyers and those having a refresh in their current home took advantage of summer promotions both in-store and online.' Nevertheless, similar spending data from Barclays painted a slightly different picture, pointing towards a marginal dip in monthly spending. It reported that consumer card spending was 0.1% lower in June, as essential spending dropped for the month. Barclays said essential spending was down 2.1% for the month, according to its card data, despite the improvement in weather. It, however, highlighted that sporting events and festivals helped drive an uptick of non-essential spending, with entertainment, hotels and travel spending all higher. The figures also showed that furniture retailers saw a strong month, with an 8.2% increase in sales. The overall dip came despite surveyed customers indicating that their confidence about their finances is at its strongest level for four months. Karen Johnson, head of retail at Barclays, said: 'Despite the warm weather, which usually boosts non-essential sectors such as retail and hospitality, consumers spent cautiously in June, prioritising value as they navigate economic uncertainty. 'Encouragingly, entertainment, beauty and furniture stores bucked the trend, while confidence in household finances improved, showing consumers' willingness to spend on the things that matter most to them.'
Yahoo
24-06-2025
- Business
- Yahoo
Retail lobby group accused of M&S cyber cover-up
Britain's biggest retail lobby group has been accused of a cover up after publishing 'made up' Marks & Spencer sales figures following a cyber attack on the retailer. Shops were told last week that the British Retail Consortium (BRC) had been using out-of-date numbers for M&S while its systems were down, masking the true impact of the cyber attack on its sales. The admission has provoked astonishment among members. One senior retail executive said the BRC had 'effectively said to industry that the data is completely made up'. The inaccurate figures were included in the BRC-KPMG benchmark, which is seen as a crucial tool for high street stores to understand how they are performing against competitors. Analysts and the Government also monitor the index to track the wider health of the retail sector. The benchmark does not break out the individual performance of each retailer, but is compiled using sales figures submitted by shops for different categories including clothing, accessories and books. The BRC said it had used out-of-date figures for M&S because it had not received any data from the company. Rather than excluding M&S, the BRC used 'placeholder' numbers for weeks. These figures were based on figures from before the cyber attack, which forced the retailer to suspend online sales for months. The practice only came to light after the BRC sent an email to members last week telling them they should be careful in using the data. One senior retail executive said: 'It's one thing to take the number out. It's another to add one in and make it up.' Analysts said the distortion of the figures risked damaging trust in the benchmark. Richard Lim, chief executive of Retail Economics, said: 'BRC members that participate in the scheme will be using it to inform their tactics and strategies all the way up to board level. There will be specific categories that potentially wouldn't have given a clear picture of underlying trade.' The BRC argued that excluding M&S from the benchmark would have allowed competitors to work out crucial information about the retailer, such as market share. Separate figures suggest M&S has suffered a significant hit to sales from the cyber attack, which saw its systems frozen and customer data stolen. Kantar data found that clothing sales at M&S were down by a fifth in the four weeks to May 25 compared with the same period a year earlier. Meanwhile, spending on food was nearly flat, with NIQ numbers showing spending in M&S's food halls rose by 0.8pc in the four weeks to May 17 compared with a year earlier M&S has warned that the breach will wipe £300m from its profits after the attack reduced availability of food across its stores and stopped it from being able to accept online orders. The retailer only resumed online orders earlier this month, more than six weeks after the attack began. It has come as a major setback to bosses, who had been credited with steering a turnaround of the retailer before the attack. Stuart Machin, M&S's chief executive, saw his pay package jump almost 40pc last year to £7.1m amid a rise in performance-linked bonuses. A spokesman for the BRC said: 'The BRC-KPMG Retail Sales Monitor is a leading indicator of retail sales activity in the UK used by businesses, analysts and the Government. All retail contributors submit their data on the basis that it remains strictly confidential and secure. 'We have tried and tested processes to ensure that no commercially sensitive information, including market share, can be deduced from changes to the data - particularly where a contributor is unable to submit for a period of time, or when contributors leave or join the benchmark.' The BRC gets its funding from retailers, with members paying a fee based on their revenues. M&S is one of the largest retailers in the UK by revenues, making £13.8bn in sales in its last financial year. M&S was contacted for comment.
Fashion Network
13-05-2025
- Business
- Fashion Network
Sunny weather boosts UK April retail spend, but consumers stay cautious
It didn't come as a surprise as the late Easter weekend combined with some sunny weather to boost spending on both essential and discretionary categories. Barclay said that non-essential spending rose by 5.1%, which was a 21 month high. And retail spending in total rose 6.8% with all retail sub categories seeing growth for the first time since Barclays began tracking them in 2019. That said, clothing retailers saw spending up 'only' 3.6% (only just edging up above inflation), although transaction growth topped 6% possibly showing that retailers are keeping lid on prices. Meanwhile, the BRC- KPMG report saw similar figures with total retail sales up 7% against a decline of 4% in April 2024, boosted by the Easter date shift. Non-food sales increased by 6.1% year on year in April, against a decline of 6% in April 2024. In-store non-food sales increased by 5.6% having declined 6.2% a year ago, and online non-food sales increased by 7% against a decline of 5.5% this time last year. Helen Dickinson, chief executive of the British Retail Consortium, said: 'The sunniest April on record brought with it a boost to retail sales. While the stronger performance was partially a result of Easter falling in April this year, the sunshine prompted strong consumer spending across the board. Clothing sales, where growth has been sluggish in recent months, improved as consumers refreshed their wardrobes for the new season.' And Linda Ellett, UK head of consumer, retail & leisure at KPMG, added: 'Retail sales have been showing growth for five months now. The pace of that growth picked up in April due to Easter and the drier weather boosting clothing and garden-related sales, while the uptick in house buying ahead of the Stamp Duty changes likely filtered through to furniture and DIY related sales, as well as other homewares. Returning to the Barclays report, it included some interesting survey results. Amid ongoing uncertainty, 72% of UK consumers remain concerned about the impact of tariffs on household finances, although this was an improving picture compared to the start of the month (77%). In light of the current state of the global economy, 27% are saving more each month to prepare for potential price increases. Despite these concerns, confidence in household finances remains steady at 70%, with 74% living within their means. And shoppers are prioritising British-made products, with one in eight willing to pay a premium for UK-based brands. Meanwhile, consumers are cutting back on self-care to save money. One in five (22%) female respondents are now opting to do at-home treatments, instead of visiting a salon, while 14% are requesting longer-lasting or lower maintenance hair and beauty treatments.
Fashion Network
13-05-2025
- Business
- Fashion Network
Sunny weather boosts UK April retail spend, but consumers stay cautious
It didn't come as a surprise as the late Easter weekend combined with some sunny weather to boost spending on both essential and discretionary categories. Barclay said that non-essential spending rose by 5.1%, which was a 21 month high. And retail spending in total rose 6.8% with all retail sub categories seeing growth for the first time since Barclays began tracking them in 2019. That said, clothing retailers saw spending up 'only' 3.6% (only just edging up above inflation), although transaction growth topped 6% possibly showing that retailers are keeping lid on prices. Meanwhile, the BRC- KPMG report saw similar figures with total retail sales up 7% against a decline of 4% in April 2024, boosted by the Easter date shift. Non-food sales increased by 6.1% year on year in April, against a decline of 6% in April 2024. In-store non-food sales increased by 5.6% having declined 6.2% a year ago, and online non-food sales increased by 7% against a decline of 5.5% this time last year. Helen Dickinson, chief executive of the British Retail Consortium, said: 'The sunniest April on record brought with it a boost to retail sales. While the stronger performance was partially a result of Easter falling in April this year, the sunshine prompted strong consumer spending across the board. Clothing sales, where growth has been sluggish in recent months, improved as consumers refreshed their wardrobes for the new season.' And Linda Ellett, UK head of consumer, retail & leisure at KPMG, added: 'Retail sales have been showing growth for five months now. The pace of that growth picked up in April due to Easter and the drier weather boosting clothing and garden-related sales, while the uptick in house buying ahead of the Stamp Duty changes likely filtered through to furniture and DIY related sales, as well as other homewares. Returning to the Barclays report, it included some interesting survey results. Amid ongoing uncertainty, 72% of UK consumers remain concerned about the impact of tariffs on household finances, although this was an improving picture compared to the start of the month (77%). In light of the current state of the global economy, 27% are saving more each month to prepare for potential price increases. Despite these concerns, confidence in household finances remains steady at 70%, with 74% living within their means. And shoppers are prioritising British-made products, with one in eight willing to pay a premium for UK-based brands. Meanwhile, consumers are cutting back on self-care to save money. One in five (22%) female respondents are now opting to do at-home treatments, instead of visiting a salon, while 14% are requesting longer-lasting or lower maintenance hair and beauty treatments.
