The comparable sales slide in September was 2.3 per cent year on year, an improvement on the previous month, when sales plummeted 11.5 per cent.
However, the capital continued to underperform the UK as a whole, the London Retail Consortium's Sales Monitor revealed.
Retailers have been campaigning against ongoing problems in London, such as the impact of the Congestion Charge, which they believe has driven consumers away from the West End.
In response to the July terrorist attacks, store groups organised the Oxford Street Festival. Its effect was included in the September data. LRC director Kevin Hawkins said: 'The campaign to get shoppers back into central London succeeded in attracting the crowds, but unfortunately takings did not match the increase in visitor numbers.'
KPMG head of retail Helen Dickinson said: 'When compared with -8.9 per cent in July and -11.5 per cent in August, September's results are a valiant performance, which hopefully will bring back some optimism for Christmas.'
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