Growing – Cookshop/ Housewares

Cookshop independents notched up a third quarter of growth after nearly three years of decline, new research from CHA parent bira shows. However, the percentage of growth is falling and was down to 1.19% in the third quarter.

Related product sectors experienced mixed fortunes around this benchmark, with furniture, floor coverings and beds continuing to roar ahead, hardware falling to just above zero after two years of growth, and pet products and garden falling into negative territory.

Across all product sectors growth stood at 1.33% year-on-year against the same quarter in 2014 and marked the fifth quarter of increasing sales, albeit at the lowest rate of increase in 2015.

Six out of ten respondents reported rising turnover, once again a post-crash high, but the effect of this was muted by the average turnover uplift reported being at the lowest level since the same time. More shops are experiencing lower average increases. Results were positive across all regions, with Scotland leading at 3.16% and Wales following closely behind at 2.67%. The South West had the lowest growth at a tiny 0.07%, effectively zero.

Retailer confidence stood at the highest level since the crash, with three out of four feeling confident or very confident and only on in four describing themselves as anxious.

If there is a cloud on the horizon it is the future of cost increases. 54% reckon that the new National Living Wage will result in fewer jobs within their businesses by the time it reaches £9 per hour in 2020. As one member commented “coupled with the pension contributions kicking in at 3% for employers by 2017, the pot will run dry very quickly!”