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Home spending drives July sales
Archived article dated Wednesday August 12th 2009
UK retail sales values rose 1.8% on a like-for-like basis and 3.6% on a total basis, from July 2008, when sales had fallen, hit by changeable weather according to the BRC/KPMG Retail Sales Monitor.
July was slightly stronger than June, but the growth was against a weaker July 2008.Food sales growth slowed, partly reflecting lower inflation. Homewares and furniture benefited from clearance discounts and very wet weather which turned minds to indoors after June's heatwave. Clothing sales also slowed despite a good start to new autumn/winter ranges. Non-food non-store sales (internet, mail-order and phone sales) in July were 20.0% higher than a year ago, also benefiting from clearance sales.
Stephen Robertson, Director General, British Retail Consortium, said: “July showed us both sides of the British summer and gave some parts of retailing a much-needed boost. Seasonal clothing clearances did well early in the month with good summer food sales as the heatwave continued. The largely cooler, wetter second half of the month turned attention indoors helping sales of furniture and homewares - which have been under pressure throughout the downturn. There are some signs that people are using holidays to improve their homes rather than spending on going away.
"There is a sense among some customers that the beginning of the end of recession is here but rising unemployment and job-loss fears will continue to hold back the widespread return of consumer confidence for some time yet."
Helen Dickinson, Head of Retail, KPMG, said: “On the face of it, last month's trend has continued with retail sales holding up better than some other areas of consumer spending. But, the volatility of performance across the different sectors remains, highlighting the current precarious nature of consumer demand. The results for the month and the rest of the year need to be considered in the light of the performance last year, which continued to weaken as the year progressed. Furniture and floor coverings and house textiles finally had a good month after many months in the doldrums, although achieved off a very low base in July last year. Food growth in value terms slowed driven by falling inflation in food. The mixed weather hit women's and men's clothing but not footwear or children's clothing which all had another good month.”
Tagged as: brc | retail sales
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