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From a leading logistics provider

August 9, 2016
Johnston Logistics bucks UK trend

Today the British Retail Consortium and KPMG reported that total sales were up by 1.9% defying predictions of post-Brexit slump.

It appears that the warmer weather has been a major factor in the sales growth, with more picnics and barbecues helping lift sales in food and drink. However, Barclaycard reported that overall spending fell by 1% in May and June. The warmer weather may have played a part in a 12.2% increase in spending in pubs and a 12.8% rise in what card-holders spent in restaurants, it said.

Today’s news followed the last report by IMRG (Interactive Media in Retail Group), the UK’s industry association for e-retail, that online retail deliveries rose by 17% year-on-year in June this year. Online shoppers spent 17% more in June than the same month last year. An IMRG poll of retailers found that after an initial slowdown in sales in the days following the referendum result, sales recovered to normal levels. The report also showed that online sales made via smartphones increased by 69% year-on-year. Today 5% of the UK population are making purchases via their smartphone every day. While many agree customer confidence is falling following the Brexit decision, this doesn’t seem to have followed through into sales during June and July. The IMRG analysis found that shoppers were buying fashion and footwear, lingerie sales were up 41%, accessories by 46% and footwear by 34%. Health and beauty sales fell by 5% and beer, wines & spirits fell by 7%.

Rob McIndoe, Finance Director at Johnston Logistics UK in Snetterton, commented ‘While IMRG reported that online sales of wines and spirits fell in June, we saw a 12.6% increase in the quantity of wine we despatched from our bonded warehousing at Snetterton to retail distribution centres, independent stockists and direct to consumers during the same period.’

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