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East Midlands Chamber News

Retailers Give Warm Welcome to Summer Feel-Good Factor

Retailers in Derbyshire and Nottinghamshire are welcoming the arrival of a seasonal feel-good factor brought on by some prolonged summer sunshine.

With expectation rising that the bounce in retail sales reported in May and June could continue for a while longer, retailers in the region have noticed a shift in buying behaviour over the past few weeks.

According to retail specialists at accountants and DNCC member PwC, there are signs that consumers are spending more confidently in response to the feel-good factor brought on by the recent spell of warm weather combined.

They say recent high-profile sporting success has also boosted the feel-good factor.

And they believe the improvement in trading conditions could continue through the second half of the year.

Andy Lyon, partner and retail expert at PwC in the East Midlands, said: “Consumer confidence remains fragile and vulnerable to global economic shocks, however the summer feel-good factor has definitely arrived and is having a positive effect on trading conditions.

"This is particularly welcome coming so soon after the disappointing spring weather, which led to many clothing retailers being left with seasonal stock that they just couldn’t shift.

“As thoughts turn to summer holidays and the imminent arrival of a Royal baby, the sense of optimism in some local retail centres and on the high street is almost palpable and retailers haven’t seen that for some time.”

Looking ahead to the remainder of 2013, retailers have some difficult decisions to make about whether to adjust their stock levels for the all-important Christmas season.

In the past few years, retailers have chosen to keep stocks low and to use discounts and promotions tactically to encourage sales. However, if the feel-good factor continues, some retailers may choose to take a more speculative approach this year.