The Slight Changes
After Britain’s decision to exit EU, The country feared that major sales might go down. However, Sales seems to combat the claim as retail sales are elevating up despite the devaluation of Pound by ten percent.
According to the latest survey of the British Consortium and KPMG, The total increase of sales went up by 1.9%. Sales from July rose at 1.1%, recovering from the June’s fall of 0.5%. In total, July sales garnered 1.9%, the highest so far since January.
In another report by Barclaycard, the results display an increase around 12% in spending at restaurants, pubs and cinemas. The progress grows stronger in the month which seems to calm the aftershock of the brexit fears.
Although the sales had gone up, Barclaycard said spending overall went to a much slower phase.
The World’s Cheapest Luxury Market
One of the factors other than the warm weather that affected the sales is the heavy discounts that attracted a lot of shoppers. This includes luxury brands such as Burberry, Asprey, Jimmy Choo, Vivienne Westwood and Mulberry to name a few.
Luca Solca, the head of luxury goods at Exabe BNP Paribas quoted “A weak British pound will boost travel inflows to the UK, helping British luxury goods players like Burberry, Mulberry and Jimmy Choo."
Britain’s Economy will surely boost in the coming times. The country currently holds the title “The Worlds Cheapest Luxury Market” and is said to gather a lot of tourist and encourage spending on luxurious brands at their cheapest price.
Lower brands might not have big boost as the luxurious ones, but these brands are also on their cheapest price like the ones that are hyped. BoF confirms that all retail brands can be bought at lower price compare to other countries.
Considering that London is labeled as one of the most “expensive cities” globally, it is quite interesting to see that goods buoyed at their best price.
“These are the first full month's figures since the EU referendum, so it's too early to say if this is the start of a long-term trend, but it seems likely consumers will be watching the external environment carefully ahead of any major spending decisions.” Paul Lockstone, Managing Director of Barclaycard noted.
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