Retail sales in the UK are falling at a rate not seen since the height of the Covid-19 pandemic, new figures show.
Furniture was the poorest performing product category in the BRC-KPMG Retail Sales Monitor for June, coming in at 13th place, compared to 5th place in June 2021. According to the report, total retail sales fell by one per cent from May 29 to July 2, a marked contrast from June 2021 when they rose by 10.4 per cent.
Store-based sales decreased by 1.3 per cent but the largest decline was seen in online non-food sales, which fell by 9.1 per cent.
The cost of living crisis has been blamed for the fall in sales with consumers trying to limit their spending as they struggle to cope with rising bills and price increases.
Helen Dickinson OBE, the chief executive of BRC, said: “Sales volumes are falling to a rate not seen since the depths of the pandemic, as inflation continues to bite, and households cut back spending. Discretionary purchases were hit hard, especially white goods and homeware, while consumers also traded down to cheaper brands in food and non-food alike.
“While the Jubilee weekend gave food sales a temporary boost, and fashion sales benefited from the summer holiday and wedding season, this was not enough to counter the substantial slowdown in consumer spending.”
Retailers face a challenging time
Paul Martin, UK head of retail at KPMG, said non-food purchases related to the home, including furniture and home appliances had suffered the most when it came to falls in online spending.
He said: “As the cost of living crisis continues to deepen, retailers face walking a fine line between protecting margins and further denting consumer confidence by passing on price rises whilst negotiating with their suppliers to share the cost increases. Cost and efficiency will dominate retailers’ agendas as they are forced to make some tough decisions on which products make it to the shelves in order to remain price competitive for consumers.
“With a long run of hot weather predicted and many consumers choosing to holiday at home this summer, retailers will be hoping that the feelgood factor begins to improve confidence amongst some shoppers – as presently overall confidence levels are lower than sales may suggest.”
Uncertainties over sales volumes can make it difficult for retailers and manufacturers to know how much stock will be needed to meet demand. This is particularly challenging for companies who do not own their own warehousing space and have nowhere to keep large amounts of stock if it doesn’t sell quickly.
Working with a company like AP+, which provides third-party logistics (3PL) services to companies in the furniture and homeware sector, means companies do not have to worry about fluctuating stock levels.
AP+ provides warehouse space to companies who do not have their own storage and distribution services. Our team also picks and packs stock on behalf of our clients, making sure orders are fulfilled and sent out to the customer quickly and efficiently. To find out more about our services, contact a member of the AP+ team today.
