June retail sales surge 20%
Posted on 14 Jul 2010
June core underlying sales grew by a stunning 20% on May volumes, making June the best growth month year to date vs. 2009.
After a disappointing May, sales grew by 8.4% like for like in June vs. last year, the highest monthly growth rate experienced in 2010 to date, as the rollercoaster ride continues for specialist retailer sales this year.
The exceptional June weather had an inevitable impact, but consumer and business confidence resultant from the emergency budget, seems to have loosened the purse strings for relevant summer purchases.
An ActSmart survey reported that c.65% of businesses felt the emergency budget was generally good for business, with only c.12% viewing the results as negative. 23% of respondents are uncertain about the likely impact at this time.
What made June the best
June sales volumes were over 10% above the strong results experienced across the Easter period and June is likely to prove to be the highest volume sales month of 2010 for the specialist retail sector.
Retailer performance mix was very similar to April's, when sales grew by 7.6% vs. 2009, but more businesses benefited from the good weather accelerating cycle sales in June.
Higher end cycle price points sales were reportedly strong again, with sales achieved via the ride it away cycle finance scheme up 80% on those achieved via the comparable scheme in June 2009.
Credit and debit card sales have reportedly been buoyant across the board of recent, with Barclaycard reporting 4 consistent months of growth, but according to The Retail Bulletin June retail volumes slowed post budget, whereas the bicycle sector benefited from the cycle friendly weather.
The wider UK retail trends promote caution re peak summer trading, but with prolonged good weather forecast, promoting more staycations and outdoor leisure pursuits, cycling might continue to perform ahead of overall UK retail in July - September.
June Cycle Retailer Fact File
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June like for like core sales increased 8.4% vs. 2009 (May 1.7%; Apr 7.6%; Mar 2.3%; Feb 7.6%; Jan -17%)
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29% of retailers reported sales UP by more than 20% in June10 vs. 09 (May 29%; Apr 32%; Mar 24%; Feb 34%; Jan 13%)
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13% of retailers reported sales UP by between 10% - 20% in June 10 vs. 09 (May 6%; Apr 13%; Mar 12%; Feb 7%; Jan 5%)
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12% of retailers reported sales UP by between 0% - 10% in June 10 vs. 09 (May 16%; Apr 12%; Mar 16%; Feb 12%; Jan 6%)
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16%% of retailers reported sales DOWN by between 0% - 10% in June 10 vs. 09 (May 14%; Apr 17%; Mar 16%; Feb 13%; Jan 9%)
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15% of retailers reported sales DOWN by between 10% - 20% in June 10 vs. 09 (May 11%; Apr 9%; Mar 9%; Feb 11%; Jan 14%)
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15% of retailers reported sales DOWN by more than 20% in June 10 vs. 09 (May 26%; Apr 17%; Mar 23%; Feb 23%; Jan 53%)
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The overall increase in the growing businesses was 27.4% vs. June 09 (May 24%; Apr 27.4%; Mar 22.9%; Feb 27.7%; Jan 21.7%)
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The overall decrease in the shrinking businesses was -16.1% vs. June 09 (May -18.8%; Apr -17.2%; Mar -19.1%; Feb -20.1%; Jan -28.7%)
54% of retailers reported core sales up in the month, with an overall sales growth of 27.4% matching the previously strong months of April and February.
The 46% of retailers with sales falling short of June 2009 reported the lowest combined sales reduction year to date at -16.1%.
The retailers reporting a +20% growth in June grew by 45.8% overall in the month, whereas those reporting a sales shortfall in excess of -20% saw sales shrink by -33% overall.
The Wider Picture
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2010 year to date like for like sales growth is 2.6%
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2010 Quarter 2 like for like core sales increased by 6%
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2010 Quarter 1 like for like core sales reduced by -2%
A large element of 2009 sales growth was attributable to price inflation resultant from the weakness of sterling post the credit crunch. Although currency driven price inflation hasn't had the same impact upon sales values in 2010 as yet, the prices of forthcoming bicycle and product launches will inevitably be inflated significantly due to currency movement. With no immediate overhead savings in sight gross margins must be protected, so inevitably retail prices have to grow and - hopefully - sales volumes with it.
Market research figures were derived from 294 specialist cycle retail businesses and workshops throughout the UK, representing c350 shop fronts ranging in size from annual turnovers of £25k to £5m each The performance figures apply to core like for like retail sales only; they do not include sales achieved via retail finance, cycle to work schemes or other non-core sales transactions, which will increase growth rates accordingly. No internet/mail order ‘only' businesses participated in this research.
RELATED LINKS
January Bike Shop Sales
