–BRC: UK Jul Like-For-Like Sales -0.6% y/y; Total 1.5% y/y
–BRC: UK May-Jul Like-For-Like Sales -0.2% y/y; Total 1.8% y/y
–BRC: Only Food Sales Remain Resilient – In Value Terms
LONDON, (MNI) – UK retail sales fell 0.6% on a like-for-like basis
in August from the same month of 2010, according to the British
Retail Consortium-KPMG’s monthly sales monitor.
Total sales rose 1.5% on a year ago in August.
The BRC said that the retail sector story remained one of ‘two
halves’ – of growing food sales but declines in footwear, clothing and
homeware. Sales of big-ticket items remained ‘deal driven’, the BRC
said. A weak housing market and fragile consumer confidence were
the key factors hurting sales growth in the latter sectors.
Non-food non-store (internet, mail-order and phone) sales growth
picked up to the best since April. Sales were 12.6% higher than a year
ago, after a relatively weak 9.6% in July but 17.8% in August 2010.
Stephen Robertson, Director General, British Retail Consortium,
said that the riots had not been a major factor in the data:
“The riots were not widespread or prolonged enough to have a
significant impact on these UK-wide figures. Poor consumer confidence,
high inflation and the on-going squeeze on personal finances remain the
biggest threats to the retail sector. Sales of big-ticket items are very
dependent on discounting and many retailers’ margins are being cut to
the bone.”
Helen Dickinson, Head of Retail, KPMG, said:
“The differential between food and non-food performance continues
to grow with food sales in value terms remaining relatively resilient.
Given that much, if not all, of the growth is inflation and a higher VAT
rate versus last year, this isn’t particularly good news for retailers
as they struggle to maintain their margins”.
–London newsroom: +44 20 7862 7492; email: ukeditorial@marketnews.com
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