Upward trend in UK retail
October ONS figures move ahead
November 20 2003
October saw 3.7 per cent underlying volume growth in UK retail sales, according to the latest Office for National Statistics retail sales figures.
The growth rate was slightly higher than the 3.5 per cent underlying rate recorded in September. Growth was strongest among clothing and footwear retailers, up 7.3 per cent. Household goods retailers and other non-food stores also recorded above-average underlying volume growth.
In contrast, food retailers and department stores recorded below-average underlying volume growth in October, at 3.4 per cent and 2.7 per cent respectively.
The ONS said the strength in sales was reflected across all sectors, with sales boosted by bonfire night celebrations, Halloween and the onset of Christmas shopping.
On the three-monthly measure basis, sales were up 1.5 per cent on the previous three months.
Commenting on the figures Paul Clarke, national director, retail & wholesale sectors at Barclays said: “Although retail sales growth is almost half of what it was last year, there is still no evidence to point to a decline in the retail sector. Sales figures for clothing and household goods have continued to be strong and consumer confidence remains fairly stable.
“The expectation is that we will not see a further interest rate rise this side of Christmas which, together with a stable housing and employment market, all lead to a general feel good factor. No one seems to be talking Christmas down.
He added: “However, this is a nerve racking time for retailers. Rather like a poker game retailers will be keeping a close eye on one another to see who will move first on sales.”
