UK retail sales experience strongest growth in 7 years

There is welcome news for retailers across the United Kingdom – retail sales continue to see strong increases, as consumers and businesses alike regain their confidence in the economy. Sales volumes have risen throughout the past few months, leading analysts to expect more growth during the coming months leading up the holiday shopping season.

The Telegraph reported that data from the British Retail Consortium revealed that July's retail sales increased 2.2 percent year-over-year, marking the "best performance" since 2006. Analysts speculate that warmer weather, coupled with economic improvement and boosts in consumer confidence, resulted in the sales uptick as shoppers flocked to stores and websites to browse for and purchase merchandise last month.

The source explained that clothing and food retailers saw the most sales growth in July, followed by home improvement products, appliances and outdoor gear.

Separate data from the Office of National Statistics revealed that the quantity of retail merchandise bought also climbed in July, Stock Market Wire reported. When compared to July 2012, product quantity rose 3 percent. The source also noted that estimated weekly spending throughout all retail sectors increased to £7 billion from July 2012's figure of £6.7 billion.

Retail management software helps merchants keep track of customer returns

Customers returning merchandise is something that every retailer must deal with. Whether it's a shopper choosing the wrong size or color, a product breaking after purchase or an item found at a cheaper price elsewhere, there are many reasons why consumers take back merchandise for refunds or exchanges.

There is a lot of information that merchants can gather from customer returns, and with the help of retail management software, brands can ensure they have the tools needed to collect, store and analyze data related to returns.

USA Today reported that many retailers throughout the United States are putting more focus into tracking returns. One of the main reasons for this approach is so that businesses can pinpoint fraud and repeat returns, allowing them to prevent these kinds of instances in the future. The source cited industry estimates that revealed that every year approximately $264 billion worth of products are returned, which represents 9 percent of overall sales.

But fraud and other illegal activities are not the only reason why companies are turning their attention to customer returns. By monitoring which merchandise is taken back most often, merchants can determine if there are defects in products or if pricing strategies are not meeting market demands, for example. By utilizing a retail management software platform to store and analyze this information, brands can reduce their returns and boost customer satisfaction.

Retailers looking forward to holiday season, expecting increased sales

The holidays are a time that retailers look forward to – after all, it's the busiest shopping season of the year. However, over the past few years, the weeks leading up to and in between Thanksgiving and Christmas were lackluster, as the global economic recession hit many consumers hard. Fortunately, things are looking brighter for 2013's holiday season.

According to a recent survey conducted by Baynote, 38 percent of merchants surveyed said they are expecting their sales to grow between 11 percent and 20 percent from last year's holiday. Furthermore, 22 percent of respondents are optimistic about a sales increase of 21 percent or more this year. 

However, although sales may be picking up again, the shopping season is expected to look a bit different. The study revealed that while retailers anticipate shoppers visiting their brick-and-mortar locations in large numbers, most companies expect the bulk of their holiday sales  to take place online. Baynote found that 60 percent of businesses forecast a year-over-year rise of 10 percent in purchases made through the Internet. 

Additionally, mobile growth is another expected positive holiday season trend, as more than half of respondents (53 percent) think revenues from mobile point of sale solutions will rise significantly this year.

July US retail sales poised for growth as consumer confidence rises

Retail sales and consumer confidence are two aspects that typically go hand-in-hand. Merchants always welcome the news that Americans are more positive about the economy and their own financial conditions, as this often translates into increased sales as shoppers hit retail stores and websites.

July's retail sales are expected to rise, as a recent report from Thomson Reuters and the University of Michigan revealed that U.S. consumers are feeling better about the nation's economy. Bloomberg explained that the Consumer Sentiment Index conducted monthly by the two organizations reached 85.1 in July, up from the previous month's figure of 84.1. The latest index is the highest in six years, and the source noted that analysts expect consumer sentiment to continue to improve well throughout the rest of this year.

Preliminary retail sales figures are already showing positive growth for retail sales in July. Dow Jones Business news reported that according to data from Redbook Research, sales at national chain stores rose 0.9 percent during the first two weeks of the month from June. When compared to the same time last year, the figure stands at a 3.1 percent gain.

UK retail sector experiencing positive growth this year

Retailers throughout the United Kingdom have had their fair share of difficulties over the past few years, as the global economic recession forced many merchants to cut back on staff, increase their prices and deal with lower sales. However, the tough times seem to be over, as the retail sector is currently seeing positive growth.

Retail Gazette reported that, according to the British Retail Consortium's (BRC) Bond Dickinson Retail Employment Monitor, the industry's employment situation significantly improved during this year's second quarter, as it grew 3.7 percent from the previous quarter. The source explained that this is the sixth consecutive quarter of employment growth for U.K. retailers, and analysts from the BRC stated that the increase is the best they've seen since 2009. This is indicative of further boosts in the coming months, the source detailed.

As for retail sales, British consumers seem to be visiting more stores and websites to purchase products. The Wall Street Journal reported that data from the Office of National Statistics showed that sales grew 0.9 percent during the second quarter from the first quarter. Economists anticipate these figures will keep increasing the rest of the year as economic recovery continues to occur.

Both US and EU retail sectors saw improvement in second quarter

Although there is an entire ocean separating the two continents, the retail sectors in the United States and the European Union recently had one thing in common: both regions experienced solid retail growth during this year's second quarter. This is especially welcome news for European merchants, as retail sales throughout the continent have been sluggish over the past few months.

In the E.U., data from Eurostat revealed that retail sales rose 1.2 percent from April to May. The International Business Times reported that while this is not a significant increase, it is a step in the right direction for an economy that has been struggling with recovery. It may take some time before the E.U. can get back to it's pre-recession levels last seen in 2008, but boosts in retail sales are always a positive sign to improvement, the source explained.

As for the U.S. retail sector, sales have been increasing slightly over the past few months, and recent statistics show that retail vacancies are declining, signaling that more merchants are opening up new storefronts. The Wall Street Journal reported that research from Reis Inc. found that vacancies dropped to 10.5 percent in the second quarter, which is the lowest level seen in four years.

Did Mother Nature help increase July retail sales?

Millions of Americans were impacted by an extreme heat wave that swept across the country in the middle of July. There were many things that people did to keep cool, including taking beach vacations, staying at home and jumping in the swimming pool. Another thing that individuals did during the excessive warm temperatures was visit retail stores to not only shop, but to take advantage of the air conditioning.

Wall St. Cheat Sheet reported that a study by the International Council of Shopping Centers revealed that preliminary figures from the nation's retailers are showing strong growth in July. The industry organization believes this is due in large part to the incredibly hot weather that drove consumers inside to shopping malls and brick-and-mortar retailers. Also, for those who did not venture outside, ecommerce was the main way these individuals browsed for and purchases retail items, the source explained.

"Excessive heat in parts of the country and summer clearance sales helped to heat up a positive performance for retailers overall," noted the International Council of Shopping Centers' Vice President of Research and Chief Economist Michael Niemira.

Dow Jones reported that chain store sales throughout the country increased 0.9 percent during the first two weeks of July from the previous month, according to data from Redbook Research.

Expectations vary on retail back-to-school sales

Even though the Fourth of July was less than two weeks ago and the summer is not yet over, many parents are thinking ahead to the upcoming school year. For retailers, this means stocking their shelves with school-related items to prepare for the influx of customers. However, several estimates on the back-to-school shopping season are varied.

According to Reuters, many merchants throughout the United States are ordering less school-related inventory this year, after a sluggish winter season and fluctuating consumer spending levels have pointed to potentially stagnant back-to-school sales. The source explained that because the upcoming shopping period is the busiest only behind the holiday season, retailers want to make sure they don't order too much merchandise that they will later have to mark down. Analysts interviewed by the news source stated that while retail sales will increase in the coming weeks, it won't be a "blowout year."

On the other hand, CNBC reported that a lower unemployment rate and higher consumer confidence will contribute to a strong back-to-school shopping season. Last year, merchants brought in $84 billion throughout the seven week period, and while spending may vary this year, more parents are willing to purchase the necessary school items for their children, which could lead to increased sales, the source noted.

Consumer spending and sentiment remain stagnant in June

The past several months have been positive in terms of consumer confidence and spending, as economic conditions continue to improve and individuals feel better about their own finances. However, the latest data shows that these levels have remained relatively stagnant, signaling that Americans are still somewhat hesitant about their retail spending.

According to Bloomberg, the most recent Consumer Sentiment Index from Thomson Reuters and the University of Michigan decreased from 84.1 in June to 83.9 this month. While it's not a sharp decline, it is below the five-year high of 84.7 that was seen in May, the news source explained. However, despite the drop, analysts expect the index to increase in the coming months.

"It's a slip in confidence from recent highs rather than the start of a new downward," TD Securities Strategist Gennadiy Goldberg told the source. "As we get later in the year and the economy improves, consumers will start to see better numbers and they'll notice that."

On the other hand, consumer spending remained the same in June, Gallup Economy reported. A study by the source revealed that the average amount spent daily came in at $90 last month, which is the same figure from May. It is better than the average of $86 that was spent each day in April, the source explained.

Summer season brings in more sales for US retailers

The warm summer months have not only lured people out of their homes to take advantage of the pleasant weather, but it seems as though the season has also resulted in a pick up in consumer spending. For retailers throughout the United States, this is welcome news, as they stock their shelves with summer merchandise to bring in more patrons and boost their sales.

According to recent data from Thomson Reuters, U.S. retail stores that have been open for more than a year have released their initial reports for June's sales, and most saw a strong rise in their revenues. While the official statistics have yet to be released, Reuters noted that analysts have forecast a 3.6 percent overall increase from May's retail sales. Retail sales jumps of more than 3 percent are indicative of solid consumer spending, the news source explained.

Dow Jones Business News reported that improving weather conditions following a particularly cold winter are one contributing element to better retail sales. U.S. merchants are anticipating even better sales in the coming months, as many gear up to begin their back-to-school campaigns.