Retail sales decline 0.8% in Sept says BRC

11 Oct '05

3 min read

Trade association British Retail Consortium (BRC) released September sales. No worse but tough months ahead.

• Retail sales in the UK in September fell 0.8% on a like-for-like basis from September 2004 when sales had grown 2.0%. Like-for-like growth has now been in negative territory for seven of the nine months so far this year.

• The three-month trend rate of growth weakened slightly in September to -1.4% from -1.2% in August for like-for-like sales, and edged up to 2.9% from 2.7% for total sales.

• Clothing and footwear showed larger declines than in July and August, despite a late boost from Autumn/Winter ranges when the weather cooled. Food sales were little changed from August and still weaker than in June and July.

• The housing slowdown and weaker consumer confidence continue to hit big-ticket furniture, electricals and DIY, with many retailers resorting to discounts and promotions to drive sales.

Kevin Hawkins, Director General, BRC comments that while the underlying trend does not appear to be getting any worse, it is still too soon to say that things are improving. Next month's figures will give us a better read on what is happening on the high street, but from now on the comparatives get softer in the months leading up to Christmas. The case for a reduction in interest rates is now as pressing as ever.

Helen Dickinson, Head of Retail, KPMG comments that although the September figures are relatively unchanged on the previous month, they are on the back of slightly stronger comparatives and hence highlight, however minute, a slight improving trend over the last couple of months. Whether this represents a fundamental shift in the pattern seen throughout the year as we run up to Christmas is doubtful. Clothing retailers will be hoping the cold winter weather sets in soon whereas the food retailers, whose solid performance has stopped the figures showing the underlying dismal performance across the wider markets, will hold off complaining too loudly just yet.

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