UK retail sales pick up in September
UK retail sales rose unexpectedly last month despite the wider economic gloom. Like-for-like sales were 0.3% higher than September 2010, when sales had risen 0.5%. Total sales were up 2.5%.
Food sales rose at similar rate to July and August and there was slight growth in non-food sales. Larger purchases continued to be affected by fragile consumer confidence and the weak housing market. Clothing sales declined sharply in the end-of-month heatwave as consumers put off buying their new winter wardrobes.
Online and mail order sales growth fell back after rising in August. Sales were 10.1% up on a year ago, down from 12.6% in August and well below the 19.1% in September 2010.
Stephen Robertson, director general of the British Retail Consortium, said: “In these harsh times, we have to be thankful for this minor improvement in growth compared with August but underlying conditions remain weak. Spending growth is below inflation meaning customers are buying less than this time last year. And there’s no guarantee next month’s figure will be better. Total sales growth has been flipping between 1.5 and 2.5% for four months now and year-to-date like-for-like growth is zero.
Helen Dickinson, head of retail, KPMG, commented: “As we are entering the crucial season in the run-up to Christmas the outlook may be described as “hopeful” but that’s as good as it gets I am afraid.”
