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Retailers bank on promotions as sales stall 07/06/2011

High street retailers are banking on promotional labels to get shoppers spending again after a study found that sales stalled last month.

Despite positive figures recorded during April - with good weather and the royal wedding boosting spirits - retail spending in May fell by 0.1 per cent, the BDO monthly high street sales tracker found.

Homewares were the most poorly-performing products, while fashion sales had decreased by 10.4 per cent by the last week in May.
The slump was blamed on poor weather and a hangover from government tax increases.

Don Williams, partner at BDO, said a number of shops have already started introducing summer-themed promotional labels to try and tempt people to part with their money.

"Retail promotions are focused and narrow rather than broad and deep. Retailers are using them as a tool to drag customers over the threshold," he explained.

Similar research from the CBI last month also found that high street sales volumes growth remained sluggish in May 2011.

Denny Bros Ltd, 07 June 2011 

 



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