UK retail sees further slowdown
Lowest growth rate for three years
May 22 2003
The slowdown in UK consumer spending is starting to bite, with figures from the Office of National Statistics showing that retail sales growth is at its lowest level for three years.
In the three months to April 2003, retail sales grew by 0.4 per cent compared with the previous three months, and by 3.5 per cent over the same three months a year ago. The ONS said growth rates are “lower than those reported for most of the last three years.”
Non-food retailers performed less well than food retailers, while department stores and mail order retailers suffered the sharpest decline. Prices in non-food stores are still falling, said the ONS.
Paul Clarke, national retail director, Barclays Business Banking said: “Clothing and footwear retailers sales volume growth is now slowing sharply, at a time when market speculation is at a peak with a substantive bid for Selfridges and an approach for Debenhams – a fascinating development in itself.
“June will be a critical month for retailers as the National Insurance increase hits shoppers’ pay packets.”
