UK retail sales unchanged
UK retail sales unchanged
Thursday 17th September 2009
UK retail sales were unchanged in August from July, according to the Office of National Statistics (ONS).Sales figures out today showed a stagnant picture over the summer, as economists speculate the strength of the recovery.
The figures coincide with news from high-street store French Connection that sales were down, as well as John Lewis, who saw huge falls in profit despite their Waitrose sector doing well.
However, the ONS said the volume of retail sales in August was 2.1 per cent higher than in August 2008, and sales volumes for the three months to August was 2.7 per cent higher than the same period a year ago.
The British Retail Consortium (BRC) said the figures confirm shoppers are being cautious. BRC director general Stephen Robertson said: "The official data confirms our own findings that the strong retail sales in June and July were not sustained.
"With unemployment rates at a 14-year high and predicted to increase into next year, most people are still very cautious about spending on expensive items – unless there are sufficient discounts.
"As we head to the crucial final quarter we mustn't get carried away if, in the next few months, sales growth data appear particularly strong. The comparison will be with very weak figures last year, when total sales growth fell below zero from October onwards and Christmas was the worst since 1995."
Between July and August the ONS figures showed no sales volume growth, with food stores predominantly increasing by 0.7 per cent, and non-food stores decreasing by 0.6 per cent. Within predominantly non-food stores, all sectors showed decreases apart from household goods stores which had no growth. Earlier today B&Q announced increased sales, buoyed by an increase in consumer interest.
"In order for autumn lines to move off the shelves in good numbers, retailers will be hoping for a cold snap to encourage the public to go out with a mind to looking for new seasonal essentials.
"Shoppers may also be mulling over the forthcoming rise in VAT, leading them to consider picking-up larger discretionary items in advance of any percentage hike early in the New Year," Richard Lowe, head of retail and wholesale at Barclays Commercial Bank commented.
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