High Street sales slide extends through May as shoppers migrate online
The long term decline of the high street continued unabated through May with year-on-year sales slipping a further 1.9 per cent, according to BDO’s High Street Sales Tracker.
Such a drop represents the largest single dip in sales since the height of the recession and marks a continuation of monthly contractions from October 2015 that have only been broken by a brief rebound in January as shoppers scrambled to grab a bargain.
Leading the falls were a 2.4 per cent decline in lifestyle sales compared to May 2015 and a 1.9 per cent fall in fashion sales. By contrast online sales have surged 18.5 per cent, fuelling concerns that current shifts aren’t a one-off occurrence but may single a permanent change in habit.
Sophie Michael, head of retail and wholesale at BDO, said: "A fall in retail sales is often sparked by consumers choosing to spend their disposable income on things like eating out, but the evidence is that people are reducing spending across the board.
"Things have been tough for retailers since the end of last summer and there's not much to suggest confidence will pick up soon. Retailers will have to be strategic with their discounting and confident their product is strong enough to appeal to their customers when they decide to spend."
In the latest sign off retailers difficulties BHS is to be formally wound down with the closure of all its stores.