Weekly Retail & Leisure News - 16 May, 2016
in the UK retail market remain challenging, as consumer uncertainty grows ahead
of the EU referendum. Declining consumer confidence has continued into Q2, and
looks to be impacting retail sales and footfall, both of which were down in
April. According to the BRC and Springboard, retail footfall in April fell by
2.4% Y-o-Y. High street footfall saw its biggest decline in two years since
February 2014, as it fell by 4.7%, following a 3.9% drop in March. Footfall in
shopping centres edged down 0.7%, although retail parks saw an uplift of 1.1%.
Retail sales were also down in April, according to the BRC, with LFLs falling
by 0.9% Y-o-Y. Total retail spending was flat, although this is compared to a
fall of 1.3% a year ago. Home accessories sales were the top performer,
profiting from a buoyant housing market. Over the three months to April, total
food revenue fell by 0.2% compared to a year ago, while LFLs were down 1.7% in
the same period, as the supermarket price war continues to grip the sector. Fashion
and footwear sales were particularly weak in April, as the cooler weather
dampened the launch of spring/summer ranges.
However, strong retailers with robust strategies and customer propositions
continue to demonstrate growth. Superdry’s parent company, SuperGroup, for
instance, has reported that LFL sales were up 11% in the year to April 23, and
pre-tax underlying profit is expected to be up £63m to between £72.5m-74m. The
positive results are partly due to Superdry’s ‘transeasonal’ ranges, which make
sales resilient to changing weather and consumers’ shifting shopping habits.
Sales have also been driven by the retailer’s recent successful international
expansion, particularly across Western Europe.
To discover more about
successful international retailer expansion strategies, please register for
JLL’s latest global report, Destination
A representative will be in contact with you shortly.
If you would like to read more of our market commentary and gain further insight into the UK retail and leisure market, sign up for our weekly newsletter, delivered to your inbox every Monday afternoon. Preview email
Director, Head of Retail Research (UK & EMEA)
+44 (0)20 3147 1155
Director, Head of UK Retail & Leisure
+44 (0)20 7318 7838
JLL’s new retail LinkedIn group is dedicated to explore retail’s future trends.
Join the conversation.