Weekly Retail & Leisure News - 24 August, 2015
The UK retail market has received
a major boost from Chinese visitors this summer. Analysis of spending by
Chinese Visa cardholders shows a 44.5% increase in money spent in the UK in
July year-on-year, exceeding spend by French and Australian visitors. This now
means visitors from China are the second highest spending tourists in the UK,
behind the US. Shopping continued to be the Chinese’s most prevalent holiday
activity, with £20m spent on clothing, at department stores and on the high
street in July.
Additionally, the ONS confirmed
the BRC’s positive figures released the week before last, reporting another
monthly sales rise. July sales volumes rose 4.2% year-on-year as strong growth
in household goods sales helped to offset falls in sales of petrol and clothes.
It was also announced that the CPI measure of inflation edged up to 0.1% in
July from zero the month before, remaining well below the Bank’s 2% target. The
UK economy and retail sector will continue to be helped by the low levels of
inflation due and the additional spending power that provides consumers.
In other news, Asda announced its
worst sales performance in its 50 year history last week, hit by fierce
competition for customers in which rivals cut prices and issued significant
amounts of discount vouchers. Asda boss Andy Clarke insisted the supermarket
had reached its “nadir” and would bounce back after revealing a 4.7% fall in
LFLs in the three months to June 30. Kantar Worldpanel estimates that Asda
still has a market share of around 16%.
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Director, Head of Retail Research (UK & EMEA)
+44 (0)20 3147 1155
Director, Head of UK Retail & Leisure
+44 (0)20 7318 7838