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Retail sales up but 'nothing to write home about'
07-09-2010 08:52
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Parents stocking up on school clothes ahead of a return to the classroom gave retail sales a welcome boost in August, although the figures were "nothing to write home about".
The British Retail Consortium (BRC) reported total sales rose 2.8% last month and by 1% on a like-for-like basis, which strips out new store openings.
"Back-to-to school wear and the onset of autumn helped clothing and shoes produce a small overall improvement in non-food sales," confirmed BRC director general Stephen Robertson, although he admitted the numbers were flattered by a "very poor" performance a year ago.
Job fears are making shoppers less inclined to splash out on big ticket items though as the government prepares to announce a huge programme of spending cuts next month.
"Sales are still growing but anxiety about job cuts and tax rises is putting people off making major spending commitments," Robertson said. "Renewed weakness in the housing market particularly affected the furniture and flooring sector."
"With the government about to detail its cuts and a VAT rise in prospect, retailers will be hoping consumer confidence doesn't slip over the next few months."
Food sales growth slowed a little during the month as the coldest August in nearly 30 years put paid to any hope of a summer spending boost.
Helen Dickinson, head of retail at consultants KPMG, which helps compile the report, pointed out that August 2009 was the worst month of the second half of last year "so this year's results are nothing to write home about".
"Despite the recent improvement in consumer confidence, my view is that people remain worried about how they will personally be affected by the fiscal tightening measures," she said. "The impact on spending will become more apparent as we move into the higher volume autumn months."
The British Retail Consortium (BRC) reported total sales rose 2.8% last month and by 1% on a like-for-like basis, which strips out new store openings.
"Back-to-to school wear and the onset of autumn helped clothing and shoes produce a small overall improvement in non-food sales," confirmed BRC director general Stephen Robertson, although he admitted the numbers were flattered by a "very poor" performance a year ago.
Job fears are making shoppers less inclined to splash out on big ticket items though as the government prepares to announce a huge programme of spending cuts next month.
"Sales are still growing but anxiety about job cuts and tax rises is putting people off making major spending commitments," Robertson said. "Renewed weakness in the housing market particularly affected the furniture and flooring sector."
"With the government about to detail its cuts and a VAT rise in prospect, retailers will be hoping consumer confidence doesn't slip over the next few months."
Food sales growth slowed a little during the month as the coldest August in nearly 30 years put paid to any hope of a summer spending boost.
Helen Dickinson, head of retail at consultants KPMG, which helps compile the report, pointed out that August 2009 was the worst month of the second half of last year "so this year's results are nothing to write home about".
"Despite the recent improvement in consumer confidence, my view is that people remain worried about how they will personally be affected by the fiscal tightening measures," she said. "The impact on spending will become more apparent as we move into the higher volume autumn months."
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