Expert Retail Sector Accountants, James Todd & Co, Share Advice for Businesses Keen to Benefit From Recent Performance Boosts
The latest data from June 2025 indicate that retail sales outperformed much of the rest of the economy, growing 3.1% year-on-year. James Todd & Co, a respected team of accountancy professionals, has offered guidance for retail businesses to ensure they take advantage of this recent uptick.
Given that the earlier spring months were less positive, with marginal slumps in the retail sector’s performance, and numerous businesses are managing increased overheads and employment costs, the retail accountancy specialists advise that agility and reactivity are essential to support the financial stability of every organisation in the sector.
Understanding the Data and Factors Behind Recent Improvements in Retail Sales
Warmer, sunny weather is one of the elements that has contributed. Still, the information shared by the British Retail Consortium also points to other aspects which have proven beneficial for the hard-hit retail space. They include:
- Improvements of 4.1% in food sales
- Increases of 2.2% in non-food sales
- Optimistic data from a Bank of England survey suggesting hiring is due to rise by 1.1% over the next 12 months
Against a backdrop of global political instability and concerns over recent increases in the inflation rate, retail businesses should not stand still, particularly given the economic contractions in April and May, and the uncertainty about whether the UK has yet truly reached a recovery trajectory.
Michelle Buzzard, FCA, Partner at James Todd & Co says, ‘We work with retail clients in varied niches, locations and service areas, but we’ve seen many making tough decisions over the last few months, focusing on keeping their businesses viable and sustainable, with general caution about big investments or spending anything above the bare minimum.
Although this data is welcome, it’s also not a solid indicator of healthier trading conditions to come, which is why we always advise businesses to speak with our experienced teams. Creating strategic, business-specific plans, accurate budgets and incorporating current and future changes in tax obligations is key to creating a stable, financially healthy foundation.’
Future Forecasts for the Health of the British Retail Sector
Most economists characterise 2025 as a year of ‘cautious optimism’, which seems to reflect the current trends and performance figures. The Retail Industry Outlook suggests that economic growth is anticipated, albeit modestly, and that household disposable incomes are expected to be on an upward trend.
One of the best approaches is to reconsider the efficiency and consumer convenience that retailers offer, ensuring they’re poised to deliver experiences and value that consumers want, rather than relying on outdated trading models to remain relevant.
Trends and Research Relevant to Businesses in Retail
Michelle adds, ‘We often talk about agility in retail, but what that really means is having a business that can adapt quickly to changing sentiments and trends and react during periods of higher consumer spending or greater market activity without exposing itself to unnecessary risks.
Although in-person and digital trading options may depend heavily on the nature of a retailer, especially grocery brands, there is value in assessing the split of sales traffic and ensuring any expansion plans or transitions are based on real-world reporting, rather than assumptions about what may prove most profitable.
Consumer surveys have found that reasons to shop online rather than in-store overwhelmingly relate to convenience. Meanwhile, 25% of shoppers make their decisions based on price, and 17% rely on product availability when deciding how and where to spend.
However, we’ve also noted a significant appetite for sustainable retail products, and the 2025 outlook is stronger than ever, with an 8% increase to 46% in the proportion of consumers who would choose one retailer over another if it offers ethically produced products.
Taking all this into account is crucial, and ensures retailers are making tactical and well-informed decisions, positioning themselves to benefit from recent retail sector growth, but keeping close watch over any changes that might require further adjustments.’
The Goals to Growth Service for James Todd & Co Retail Clients
One of the financial services offered by James Todd & Co, called Goals to Growth, may be of particular interest to companies in the retail space that are concerned about the future, unsure of the best next steps to take, or experiencing decision paralysis in light of economic uncertainty.
Michelle says, ‘Goals to Growth is a wholly tailored service, blending mentoring, coaching and financial planning, all of which work cohesively to drive business success and ensure our clients have defined, achievable goals, and a strategic way to reach them.’
Prospective retail clients interested in accountancy and business management assistance from the retail specialists, or those in need of financial advice, are welcome to contact the firm at their convenience.
