Outdoor retailers buck UK downturn
Volume growth weak overall
April 29 2003
UK retail is seeing the lowest growth rates for three years, with only outdoor retailers bucking the trend thanks to good weather throughout the UK in March.
The Office of National Statistics said retail sales grew by 0.1 per cent compared in the three months to March, and by 4.1 per cent over the same three months in 2002.
The slowdown affected all sectors except for the ONS ‘other’ stores category, includes garden centres. The ONS said anecdotal evidence indicated that March’s good weather lead to an upturn in trade for retailers dealing with outdoor sales.
Department stores suffered the sharpest decline in the first quarter, with growth declining over the last three months of 2002. The non-food sector in general was hit by price deflation stores continued to fall.
On a monthly basis retail sales grew by 0.6 per cent in March.
Commenting on the figures, Barclays said its feedback from retail customers suggests deflationary pressures on the high street are starting to stabilise. In both March and February this year shop prices were 0.4 per cent lower than a year earlier, down from 1 per cent lower in January 2003 and 1.5 per cent lower in December 2002.
Paul Clarke, national retail director for Barclays Business Banking said: “April has been better for the high street as shoppers took advantage of the Easter break and women’s fashion retailers continued to experience very healthy growth. May will be a critical month for retailers as the National Insurance increase hits pay packets and consumers think about voting with their wallets.”
