Shopping Centre
Soggy May dampens sales
Published:  01 June, 2007
Page 7 

The latest Retail Sales Monitor from the British Retail Consortium and KPMG shows that UK retail sales rose by just 1.8 per cent on a like-for-like basis, compared with May 2006, when sales were up 3.6 per cent.

May's growth was the weakest since the 0.5 per cent reported in November 2006 and was below the average for 2006 as a whole.

The three-month trend rate of growth fell to 2.8 per cent from 3.3 per cent in April, for like-for-like sales, and to 5.0 per cent from 5.5 per cent for total sales, reflecting the continuing growth of retail space.

Clothing and footwear sales fell back sharply as the weather worsened after a warm April. DIY and gardening also suffered from the cold and rain, and big-ticket purchases continued to disappoint. Smaller homewares, toiletries and cosmetics held up well, but food sales were less good than earlier in the year. BRC director general Kevin Hawkins, said: "Although the weather was bound to depress sales growth, many of our members believe that the cumulative effects of the recent rate increases are now beginning to show up in these figures. The Bank should think twice before putting up rates again in the near future."

And Helen Dickinson, head of retail at KPMG added: "The volatility in the clothing sector continues. This month all the clothing sectors reported negative like-for-like sales compared with the same period last year - the poor weather over both bank holiday weekends really had an impact, particularly for children's clothing and footwear. It was only food and drink and the toiletries and cosmetics sectors which outperformed."


BRC/KPMG Retail Sales Monitor UK - May 2007

Year-on-year like-for-like (May 2007 v May 2006) UP +1.8 per cent

Year-on-year total sales (May 2007 v May 2006) UP +5.0 per cent



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