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  • 07 Jun 2022

Retail update: May BRC KPMG Retail Sales


Associated British Foods plc (ABF:LON), 2,216 | ASOS Plc (ASC:LON), 284 | B&M European Value Retail SA (BME:LON), 240 | boohoo group Plc (DEBS:LON), 14.0 | Card Factory Plc (CARD:LON), 105 | Currys PLC (CURY:LON), 129 | Dr. Martens Plc (DOCS:LON), 92.3 | Dunelm Group plc (DNLM:LON), 1,221 | Greggs plc (GRG:LON), 1,626 | Halfords Group Plc (HFD:LON), 140 | JD Sports Fashion Plc (JD:LON), 93.9 | Kingfisher Plc (KGF:LON), 253 | Marks and Spencer Group plc (MKS:LON), 342 | Naked Wines plc (WINE:LON), 84.7 | Next plc (NXT:LON), 12,245 | Sanderson Design Group PLC (SDG:LON), 49.5 | WH Smith PLC (SMWH:LON), 662 | TheWorks.co.uk plc (WRKS:LON), 52.2 | Watches of Switzerland Group PLC (WOSG:LON), 351 | Wickes Group Plc (WIX:LON), 199

  • Investec Bank
    • Ben Hunt, CFA | Kate Calvert

    • 3 pages


 

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Retail update: May BRC KPMG Retail Sales


Associated British Foods plc (ABF:LON), 2,216 | ASOS Plc (ASC:LON), 284 | B&M European Value Retail SA (BME:LON), 240 | boohoo group Plc (DEBS:LON), 14.0 | Card Factory Plc (CARD:LON), 105 | Currys PLC (CURY:LON), 129 | Dr. Martens Plc (DOCS:LON), 92.3 | Dunelm Group plc (DNLM:LON), 1,221 | Greggs plc (GRG:LON), 1,626 | Halfords Group Plc (HFD:LON), 140 | JD Sports Fashion Plc (JD:LON), 93.9 | Kingfisher Plc (KGF:LON), 253 | Marks and Spencer Group plc (MKS:LON), 342 | Naked Wines plc (WINE:LON), 84.7 | Next plc (NXT:LON), 12,245 | Sanderson Design Group PLC (SDG:LON), 49.5 | WH Smith PLC (SMWH:LON), 662 | TheWorks.co.uk plc (WRKS:LON), 52.2 | Watches of Switzerland Group PLC (WOSG:LON), 351 | Wickes Group Plc (WIX:LON), 199

  • Published: 07 Jun 2022
  • Author: Ben Hunt, CFA | Kate Calvert
  • Pages: 3
  • Investec Bank


Total retail sales declined 1.1% versus a 3-month average growth rate of 0.7% and 12-month average growth of 3.1%. LFL sales were down 1.5%. This is the second month in a row in which UK retail sales declined, with sales volumes seeing significant declines as increasing inflation hits discretionary spending and is driving the cost-of-living crunch. Over the 3 months to May, food sales were down 0.7% (12-month average +0.6%), with food sales up in May YoY. Non-food 3-month average sales were up 2% (12-month average +7%), with non-food sales down in May YoY. In-store 3-month average sales of non-food items were up 24.1% as they are still up against last year’s COVID restrictions for part of the period and the pick-up in spending that followed. Online non-food sales were down 8.5% in May (3-month average decline -18%) with online penetration falling to 38.7% from 42.2% last year, though still higher than pre-pandemic. Higher value items such as furniture, home appliances, and electronics took the biggest hit, with homeware also struggling. Demand for large furniture items such as beds, sofas, and dining tables continues to slow, with home accessories recording its steepest decline in sales since April 2020, and down versus 2019. Home textiles moved into positive territory for the first time this year compared to 2019. Household appliances recorded its worst performance since the category started to be recorded in 2014. White goods were particularly impacted in May, with evidence of trading down too. Availability is improving and shipping costs are starting to come down. May also saw a sharp decline in computing sales. TV sales were also down. Fashion (clothing, footwear, and accessories) and beauty did well, benefiting from holidays and a step up in socialising and events versus last year. Clothing is still ahead of pre-pandemic levels with demand for formal wear strong due to the wedding season and the return-to-work. Footwear saw solid double-digit growth in May. Beauty moved into positive territory for the first time this year. Gaming consoles continue to see good demand, though supply remains an issue. Demand for Toys and Baby Equipment continues to wane as the squeeze on spending power weighed heavily on entertainment for households, according to the BRC. The BRC also reports that better availability of garden furniture is a relief to retailers and weak footfall levels remain an issue for department stores.

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