No summer boom for Midlands retailers

RETAILERS’ hopes that this summer’s sporting and celebratory events would provide them with a boost hasn’t come to fruition.

Sector experts at accountancy and advisory firm PwC surveyed 100 High Street retailers to gauge how they are feeling about summer trading and what they are doing to attract footfall.

According to its research, almost three-quarters (73%) of stores on the High Street had sale or advertising promotions in their shop window, such as three for two offers. This is up a third on 2009’s figure of 40%, while similar to the same time last year – 70%.

The average price discounts being advertised were 47%, up slightly from 45% in 2011 and 2010.

Andy Lyon, partner and retail sector expert at PwC in the Midlands, said: “UK consumers are good at celebrating – jubilees, football prowess or potential Olympic glory – but they are proving less willing to part with their cash at the moment, except when the sun comes out or goods go on sale.

“Interestingly, the food retail sector is having a harder time currently than clothing or home retailers. The food retail sector is down almost 20% against the All Share Index this year to date, in contrast with the general retail sector, which has outperformed the market by almost 13%.

“Clothing purchases are weather related and canny consumers also know mid-June brings with it worried retailers who need to clear stock to leave room for new lines.”

Lyon said wet holiday weather has also increased the tendency to eat out rather than have BBQs at home so pubs and fast food chains have reported brisk sales.

But he still holds out some hope of a business picking up.

“With even online sales slowing, there is still considerable optimism that that the Olympics and some late summer sun will give quarter three trading a boost,” he said.

“Meanwhile, we suspect consumers will remain cautious as they ponder the largely unknown impact of the continued and deepening euro crisis on the UK.”