BRC explains season's impact on sector
The seasonal weather helped retailers track an increase in sales in September, dispelling fears that a rise in interest rates would hurt the sector.

The latest British Retail Consortium figures show a rise in total retail sales of 4.6 per cent. Like-for-like sales were up 2 per cent. Evolution analyst Nick Bubb noted: 'A month ago, the BRC screamed hysterically to the Monetary Policy Committee about the impact of higher interest rates on August retail sales, which means that 'the little boy who cried wolf' is a bit sheepish about the pick up in September.'

The BRC believes consumer confidence is still weak and people are cautious about big-ticket purchases. 'Sales growth recovered in September, but there will be no jumping for delight among retailers because the figures are flattered by inclusion of the last bank holiday,' said BRC director general Kevin Hawkins.

He added that the rise in interest rates over the past few months, coupled with growing uncertainty over the economy and the housing market, has affected the mood of shoppers. Clothing sales were strong, in line with anecdotal evidence. Menswear saw increased demand for formalwear and casualwear. The August bank holiday helped boost the DIY and gardening sector.

Topics