High street gloom as more trade shifts online

BY DAVID CRAIK THE future of many high-street chains remains perilous despite a surprise rise for retail sales in July.

According to the Office for National Statistics, sales grew 0.7 per cent last month, beating forecasts of 0.2 per cent and recovering from a fall of 0.5 per cent in June. Compared on a year-on-year basis, July’s sales were up by 3.5 per cent.

But the growth was driven by online sales which now account for a record 18.2 per cent of total revenue.

High-street department store firms also rode the online boom with sales surging 35 per cent year-on-year, but they reported a reduction in shop footfall.

ONS statistician Rhian Murphy said: “Many consumers stayed away from some high-street stores but online sales were very strong, supported by several BROWSE More people are shopping online retailers launching promotions. Food sales remained robust as people enjoyed the World Cup and the sunshine.”

Guillaume Pousaz, chief executive and founder of online payment solutions providers Checkout.com, said: “The summer heatwave appears to have been both a blessing and a curse in July, with people choosing to visit the beach rather than the high street. After last week’s rescue of House of Fraser, and the already well-documented closures of high-street names earlier this year, several retailers may be wondering if they will need to be rescued next.”

The British Retail Consortium were also cautious. Their head of retail insight Rachel Lund said: “The concern is we are seeing the temporary expression of demand built up during the colder conditions at the beginning of the year. If that is the case, the last quarter could be very tough.”

According to a recent New Economics Foundation report, 25,000 high-street jobs have been lost this year. Casualties include Poundworld and Maplin.

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