Sales Still Slow for UK Retailers

 

 

 

Like-for-like sales, which eliminate the effect of new floor space, grew just 0.5% in comparison with a year earlier, following 1% growth in August, on the BRC/KPMG retail sales monitor.

 

What growth there was came mostly from sales of food, but the improvement was partly driven by food price inflation. Non food sales fell year on year for the first time since mid 2009.

 

“With VAT higher than last year, and pushing up sales values, it’s an even worse performance than it looks,” said Stephen Robertson, BRC director-general. “We’ve now had six straight months of low growth thanks to persistently weak consumer confidence and worries about the future.”

 

Little evidence is present to suggest consumers are stocking up on purchases prior to the VAT increase in January. However retailers are hoping such a trend could provide an end of year sales boost, but BRC suggests that larger purchases were hit by consumers’ uncertainty over the future.

 

Helen Dickinson, KPMG’s head of retail said: “We hold our breath as to whether the upcoming public sector spending review will derail current retail spending further – confidence is fragile.”