No summer sunshine for August retail sales

Tuesday 8th September 2009

The early summer recovery on UK high streets did not last into August, retailers said today.

Last month UK retail sales were down 0.1 per cent on a like-for-like basis compared to August 2008, when sales were hit by the very wet weather.

The British Retail Consortium, which compiled today's figures, said food sales were stronger than non-food in August, with clothing and footwear struggling.

Even internet, mail order and phone sales were hit, with the 7.9 per cent comparative rise the weakest since May.

Stephen Robertson, director general of the BRC, said the stronger figures of June and July "haven't been sustained".

"It's clear the deceptively good sales growth of those months was due to summer sun and price cuts – not any major revival in how customers are feeling. What spending we now have is all about value and essentials," he said.

"In August, food sales continued to do better than non-food. After two months of growth, clothing and footwear are well down. People are holding off buying autumn and winter clothing till they actually need it.

"Most people are still very reluctant to spend on expensive household items – unless they're sufficiently discounted. As we head into autumn, we mustn't make too much of any positive sales growth because the comparison will be with very weak figures a year ago when total sales growth dipped below zero."

Helen Dickinson, head of retail at KPMG, which compiles the figures, said the results needed to be considered in light of the performance of the year.

"Negative like-for-like sales on the back of the same situation last year is leaving many retailers with some serious challenges around controlling costs and generating cash," she added.

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