Retail growth slows in July
BRC monitor shows marginal drop
August 13 2002
Retail sales growth eased slightly in July, with like-for-like volume growth down to 3.8 per cent from 4 per cent in June.
The British Retail Consortium monthly sales monitor also showed total sales growth down to 6.5 per cent in July from 6.9 per cent in June.
The BRC said clothing performed well, with customers making the most of discounted summer clothing during a spell of good weather. Food and homeware performed less well.
BRC director-general Bill Moyes said: “The figures for July show sales slowing slightly but remaining positive, illustrating that a slowdown is far from a collapse. However, the consumer confidence remains an issue. People’s uncertainty over their long-term financial security may need to be addressed by Government action The case for the Bank of England to stimulate demand by a slight reduction in the base rate is appearing stronger.”
Amanda Aldridge, head of retail at KPMG said: “These figures show that reports of a major slowdown are grossly exaggerated although it is hard to judge how much of July’s spending is driven by desire for bargains in the Summer Sales. Grocery sales growth has slowed slightly with the impact of summer holidays and patchy performance of seasonal produce two key factors. Home related products from big ticket items to homewares were well behind the average growth rates, but this was, in part, due to many sales and promotions in these areas starting earlier this year to catch the double bank holiday in June. Clothing, particularly summer fashions, have continued to perform well into the sale period, helped by the spells of hot weather. Retailers remain concerned, however, that the current level of growth will tail off in the next few months as we head towards the crucial Christmas trading period.”
