The UK High Street has seen its worst June for nearly a decade, according to BDO’s monthly High Street Sales Tracker.
Year-on-year sales have dropped two per cent for June, the month’s worst results since 2006 and contrary to positive messages about the uplift in the UK economy.
BDO states that the results reveal a struggle among retailers against the combination of falling footfall from domestic and overseas shoppers and consumer nervousness sparked by the global environment.
The fall is also the fourth monthly dip of the year so far, says BDO.
While it’s not as severe as March’s drop of four per cent, consumers still appear reluctant to increase spending on the High Street.
In fact the figures show that consumers are more likely to spend money on leisure activities such as eating out.
“Traditionally, positive messages about the economy would have meant an increase in consumer spending,” said Sophie Michael, head of retail and wholesale at BDO.
Despite the Government and the Bank of England indicating a greater disposable income, store footfall is down and retailers are struggling to convince people to spend their cash with them.
“We are beginning to see retailers moving away from their traditional models, even evolving newer strategies that have been borne out of the recession. This will definitely be a trend to watch out for in the coming months.”