In its monthly retail report, the BRC said like-for-like growth has been in negative territory for six of the eight months so far this year. Total sales rose by 2.9 per cent because of seasonal inflation in food prices and new selling space coming on line.
The three-month growth rate improved slightly in August to -1.2 per cent like for like, from -1.7 per cent in July. Total sales rose to 2.3 per cent, from 1.1 per cent the month before.
Clothing and footwear showed larger declines than in June and July, and food sales were also weaker. Big-ticket and housing-related items continue to be affected by consumer caution. Furniture, carpets and large electricals were hardest hit, while in homewares and DIY, essentials were preferred to discretionary items.
'No one should be fooled into believing that the slight improvement relative to July indicates a change in trend. Any growth came from heavy discounting, which is not sustainable, especially as retailers' margins are already being squeezed by rising labour, property and energy costs,' said BRC director-general Kevin Hawkins. 'The underlying position is still weak and unlikely to improve unless and until there are further cuts in interest rates. Anything else is wishful thinking.'
No comments yet