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

Meanwhile, total sales grew 1.9% in July – their strongest performance since January. Here we look at how each of the sectors performed on an individual basis.

Food – up

It was a strong month for food in July, with the category reporting its best performance since November 2013, excluding Easter distortions. Consumers rushed out to buy snacks and picnic food during the hotter weeks of July, while soft fruits also proved to be a good seller.

Fashion – up

The disappointing summer weather so far meant fashion retailers had entered July with more stock than usual. The BRC-KPMG said this factor together with several weeks of higher temperatures helped clothing retailers’ sales climb in July, with the women’s category performing particularly well. The report singled out dresses, shorts, swimwear, hats and sunglasses as experiencing strong demand. However, the children’s category reported a fall in sales for the month, which BRC-KPMG attributed to a lack of demand for back-to-school clothing. Overall, most retailers said they were pleased with their clearance sales but the weather affected their full-price sales, which were lower than the same period a year ago.

Footwear – down

The hotter spell in July failed to bring sunshine for the footwear sector, which continues to be in decline. However, there was a glimmer of hope – sales did improve on June, despite a strong month last year. Promotions did help sales of adult shoes, with sandals and flip-flops proving to be popular choices. However, on the other hand, the children’s segment failed to attract a strong number of shoppers.

Health & beauty – up

Following a dismal month in June when sales hit a record low, health and beauty bounced back into shape, thanks to strong sales of seasonal items such as sun-cream; cosmetics also sold well. The report said shoppers were encouraged by promotional activities, particularly online, although discounts did lead to higher sales in stores too.

Furniture – up

The several weeks of warmer weather in July didn’t help sales of furniture, and the lapse brought the three-month average growth of the sector to its lowest level since May 2014. However, the report highlighted that even though the sales of furniture slowed down, they remained in solid growth.

Home accessories – down

Like furniture, the home categories didn’t enjoy a strong month. Seasonal products did well, as did low-priced accessories. Interestingly, some retailers noted that guest lists were experiencing less demand, which impacted sales in the cooking and dining category.

House textiles – down

Retailers said house textiles was disappointing in July, with the category reporting the lowest growth of the home categories in the month. However, the performance was set against a strong comparable last year.

Toys & baby equipment – up

Thanks to consumers snapping up outdoor toys and continued growth in indoor toys, July proved to be a stellar month for toys and baby equipment. The category achieved third position in the monthly growth rankings table.

Household appliances – up

The hot weather spurred consumers to buy fans and cooling devices, helping deliver growth in the small domestic appliances category. Large domestic appliances also performed well, with good sales of refrigeration products. Strong competition on delivery services also helped.

Jewellery and watches – up

It was a stellar month for jewellery and watches. The category achieved its strongest growth since first featuring in the monthly category breakdown in November 2014. The BRC and KPMG said the record growth in a luxury category was testament to consumers’ continuing willingness to spend.

Other non-food – up

The other non-food category managed “decent” growth in July. In-store sales have fallen for six months in a row, as retail space is rationalised and consumers tend to buy online and collect in-store. Electricals retailers reported good demand for new mobile devices but differed over the strength of purchases of TVs and audio equipment.

In physical books, which had achieved a good run since the beginning of 2015, the trend slowed in July, perhaps due to a particularly strong comparable period last year. Sales of outdoor products, including garden furniture and sport equipment, drove performance in the leisure category.

Department stores

While July brought BHS store closures, many of the retailer’s shoppers would have turned to other department stores. Some wealthy foreign tourists are thought to be taking advantage of the post-EU referendum weakness of the pound to holiday and shop in the UK. However, the impact was not felt across all retailers.