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You can find the current article at its original source at https://www.theguardian.com/business/2018/aug/16/sunshine-and-football-give-uk-retail-sales-unexpected-boost
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| Sunshine and football give UK retail sales unexpected boost | Sunshine and football give UK retail sales unexpected boost |
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| England’s extended World Cup run and the summer sunshine gave an unexpected lift to retail sales in July as consumers spent heavily on supermarket food and drink. | |
| Heavy discounting by clothing stores also brought shoppers back to the high street to reverse a decline in sales in June. | Heavy discounting by clothing stores also brought shoppers back to the high street to reverse a decline in sales in June. |
| The rise in sales will cheer beleaguered shopkeepers, but the underlying weakness in sales on the high street and the switch to online purchases is unlikely to reverse the trend for shop closures and redundancies across the retail sector. | The rise in sales will cheer beleaguered shopkeepers, but the underlying weakness in sales on the high street and the switch to online purchases is unlikely to reverse the trend for shop closures and redundancies across the retail sector. |
| Furniture and household goods sellers saw sales go into reverse as the trend for consumers to avoid buying expensive items for the home continued. | Furniture and household goods sellers saw sales go into reverse as the trend for consumers to avoid buying expensive items for the home continued. |
| Much of the blame for weak consumer spending has been directed at recent falls in wages growth, which is now running at the same rate as inflation. With inflation-busting utility bill increases and mortgage interest starting to rise, households are likely to find they have less money to spend on the high street in the second half of the year. | Much of the blame for weak consumer spending has been directed at recent falls in wages growth, which is now running at the same rate as inflation. With inflation-busting utility bill increases and mortgage interest starting to rise, households are likely to find they have less money to spend on the high street in the second half of the year. |
| House of Fraser: The department store chain is expected to close about 12 stores after being bought out of administration by Mike Ashley. It had agreed a CVA under which 31 stores were to close, but this lapsed on administration. | House of Fraser: The department store chain is expected to close about 12 stores after being bought out of administration by Mike Ashley. It had agreed a CVA under which 31 stores were to close, but this lapsed on administration. |
| Homebase: The DIY chain wants to close at least 42 stores via a CVA organised by new owner Hilco. The restructuring expert bought the DIY chain for £1 from its former Australian owner Wesfarmers who botched an attempt to bring its Bunnings chain to the UK. | Homebase: The DIY chain wants to close at least 42 stores via a CVA organised by new owner Hilco. The restructuring expert bought the DIY chain for £1 from its former Australian owner Wesfarmers who botched an attempt to bring its Bunnings chain to the UK. |
| Poundworld: The discount retailer has closed all its 355 stores, with the loss of 5,100 jobs after falling into administration in June. | Poundworld: The discount retailer has closed all its 355 stores, with the loss of 5,100 jobs after falling into administration in June. |
| Cau: The owner of the Gaucho and Cau steakhouses fell into administration in July leading to the closure of all 22 Cau restaurants, with loss of 750 jobs. A buyer is being sought for the 16 Gaucho outlets. | Cau: The owner of the Gaucho and Cau steakhouses fell into administration in July leading to the closure of all 22 Cau restaurants, with loss of 750 jobs. A buyer is being sought for the 16 Gaucho outlets. |
| Mothercare: The chain is closing 60 of its 137 outlets after agreeing a CVA in May. Additional closures in July mean 900 jobs will be lost. | Mothercare: The chain is closing 60 of its 137 outlets after agreeing a CVA in May. Additional closures in July mean 900 jobs will be lost. |
| Carluccio's: The Italian chain secured a CVA to close 30 of its 99 restaurants in late May. | Carluccio's: The Italian chain secured a CVA to close 30 of its 99 restaurants in late May. |
| New Look: The fashion chain obtained a CVA in March to cut rents and close 60 stores, with the loss of nearly 1,000 jobs. The rent cuts – on 363 stores – were between 15% and 55%. | New Look: The fashion chain obtained a CVA in March to cut rents and close 60 stores, with the loss of nearly 1,000 jobs. The rent cuts – on 363 stores – were between 15% and 55%. |
| Carpetright: The retailer obtained a CVA in April to close 92 of its 409 UK stores in September with the loss of about 300 jobs. | Carpetright: The retailer obtained a CVA in April to close 92 of its 409 UK stores in September with the loss of about 300 jobs. |
| Prezzo: In March the Italian-themed restaurant group secured a CVA to close 94 of its 300 restaurants, with the loss of 500 jobs. Rent cuts were agreed on a further 57 locations. | Prezzo: In March the Italian-themed restaurant group secured a CVA to close 94 of its 300 restaurants, with the loss of 500 jobs. Rent cuts were agreed on a further 57 locations. |
| Jamie’s Italian: The chain closed six locations in 2017 and this year agreed a CVA to close about a third of its 35 loss-making outlets. | Jamie’s Italian: The chain closed six locations in 2017 and this year agreed a CVA to close about a third of its 35 loss-making outlets. |
| Byron: The troubled upmarket burger chain is closing up to 20 of its 67 restaurants after a CVA was agreed in January. Rent cuts have been agreed at a number of other locations. | Byron: The troubled upmarket burger chain is closing up to 20 of its 67 restaurants after a CVA was agreed in January. Rent cuts have been agreed at a number of other locations. |
| Debenhams: The under-pressure department store chain wants to get rid of space at 30 of its 165 stores by bringing in gyms and other services. | Debenhams: The under-pressure department store chain wants to get rid of space at 30 of its 165 stores by bringing in gyms and other services. |
| M&S: The high street stalwart wants to close 100 outlets – a third of its main stores – by 2022 as part of a 'radical transformation' plan intended to tackle years of falling sales and profits. | M&S: The high street stalwart wants to close 100 outlets – a third of its main stores – by 2022 as part of a 'radical transformation' plan intended to tackle years of falling sales and profits. |
| Retail sales volumes rose by 0.7% last month on the previous month, and were 3.5% higher than a year earlier, above economists’ forecasts in a Reuters poll for a 0.2% monthly rise and a 3% annual gain. | Retail sales volumes rose by 0.7% last month on the previous month, and were 3.5% higher than a year earlier, above economists’ forecasts in a Reuters poll for a 0.2% monthly rise and a 3% annual gain. |
| Online sales leapt to a new record with a 15.3% increase in July compared with the same month last year. Online sales by department stores also stood out with a 35% annual increase in sales. | Online sales leapt to a new record with a 15.3% increase in July compared with the same month last year. Online sales by department stores also stood out with a 35% annual increase in sales. |
| A surprise winner over the summer was Kingfisher, the owner of B&Q and Screwfix, which increased sales by 6% at its UK division in the three months to the end of July, according to figures released on Thursday. Sales rose 3.6% at established B&Q stores and 5.5% at Screwfix outlets open for more than a year as the company said sales of weather related goods including hosepipes and fans soared. The company sold out of paddling pools as families made the most of the long hot summer. | |
| The strong figures come despite fears for the DIY sector as rival Homebase plans to close more than 40 stores and Travis Perkins considers the sale of its Wickes chain. | |
| Office for National Statistics senior statistician, Rhian Murphy said: “Many consumers stayed away from some high street stores in July, but online sales were very strong, supported by several retailers launching promotions. Food sales remained robust as people continued to enjoy the World Cup and the sunshine.” | Office for National Statistics senior statistician, Rhian Murphy said: “Many consumers stayed away from some high street stores in July, but online sales were very strong, supported by several retailers launching promotions. Food sales remained robust as people continued to enjoy the World Cup and the sunshine.” |
| Andrew Wishart, UK economist at consultancy Capital Economics, was cautiously optimistic, saying that while consumers were under pressure from weak wage growth, the figures showed retail sales started the third quarter of the year in robust health. | |
| “Of course, retail sales only account for about a third of total household spending, so the strength of spending on the high street could be offset by households reducing their outlay elsewhere. | “Of course, retail sales only account for about a third of total household spending, so the strength of spending on the high street could be offset by households reducing their outlay elsewhere. |
| “That said, annual growth in retail sales and household spending have a reasonable relationship, and retail sales growth of 3.5% year on year in the three months to July is well above growth in consumer spending of just 1.1% in the second quarter.” | “That said, annual growth in retail sales and household spending have a reasonable relationship, and retail sales growth of 3.5% year on year in the three months to July is well above growth in consumer spending of just 1.1% in the second quarter.” |
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