Analysis: BRC-KPMG August Retail Sales Monitor – sector by sector

Food – up

Food continued to perform well in August and ranked second in the growth rankings table, its highest placing since July 2013. Warm weather boosted sales of picnic food such as ice creams and prepared salads, while Olympic fever triggered increased purchases of Brazilian-themed barbeque food and festive drinks.

The three-month average for food sales rose 0.9% during the period, its best performance since December 2013, excluding Easter distortions.

Fashion – down

While a wet June hampered fashion retailer’s sales earlier in the summer, a hot August was blamed for sluggish sales during the month as retailers failed to shift transitional stock. Clothing ranked second to last in the growth league table overall and women’s fashion generating the worst sales overall.

The back-to-school period also started later this year, triggering a decline in children’s clothing sales and compounding lower footfall triggered by the warm weather. Menswear also recorded a decline in sales but was the best performing category overall.

Footwear – down

Footwear was the worst-performing category in the growth table overall, which the BRC attributed to the late timing of the back-to-school season. As a result, children’s footwear posted its worst decline since April 2008.

Men’s footwear was the only segment to record sales growth during the period, although retailers have said they expect that shoe sales have been delayed by the warm weather and later than usual start to the school season, rather than lost.

Health & beauty – up

Health and beauty maintained its strong performance through August as shoppers treated themselves to cosmetic, make-up and perfume purchases.

Sun protection products also sold well during the period, alongside slimming aid products. The category ranked third in in the growth league table overall.

Furniture – down

Although furniture sales were up overall during August, they fell on a like-for-like basis. Bedroom and dining furnitures items performed well, although the timing of the August bank holiday weekend before payday may have inhibited shoppers’ inclination to make big-ticket purchases.

However, the leap in consumer confidence on the Major Purchases Index could be indicative that this is a short-term phenomenon rather than a developing trend.

Home accessories – down

Warm weather and outdoor activities meant that sales of home accessories fell in August. Cooking and dining products posted the worst decline while the other home accessories segment reported slight growth.

House textiles – down

Home accessories suffered its worst slump since July 2013 as warm weather and the late timing of back-to-school discouraged shoppers from improving their interiors.

Toys & baby equipment – up

Sales of toys and baby equipment fell in August, recording its worst result since last November. Outdoor toys including paddling and swimming pools, swings and trampolines all recorded strong growth, but it was insufficient to offset the falling demand for indoor toys during the month.

Household appliances – up

Total sales of household appliances fell during August, although they increased on a like-for-like basis. Small domestic appliances struggled during the period, excluding sales of fans and cooling devices.

Although decline was largely offset by demand for large white goods, the category overall recorded its worse performance since last December.

Jewellery and watches – up

Jewellery and watches continued stellar performances during the month, marking its second consecutive month at the top of the growth categories league table.

Sales were bolstered international VAT-free purchases as tourists took advantage of the weak pound and snapped up luxury items.

Other non-food – down

The decline in other non-food sales was the largest contributing factor to August’s overall sales decline, despite a strong performance in outdoor and leisure products.

Electrical and electronic purchases faltered as the later back-to-school timing and the upcoming new iPhone may have dampened smartphone sales.

The release of Harry Potter and the Cursed Child also boosted book sales, while warm weather increased sales of camping equipment, garden tools and barbeques.

Department stores

Overall footfall fell across department stores in August, although some tourist locations such Oxford Street registered strong growth. Travel shops across airports and large train stations also posted strong increases in footfall.