UK retail sales in September were up 3.0 per cent on a like-for-like basis, compared with September 2006, according to the latest Retail Sales Monitor from the British Retail Consortium and KPMG.
The three-month trend rate of growth was unchanged from August, at 2.1 per cent for like-for-like sales, and 4.0 per cent for total sales, reflecting the continuing growth of retail space.
The colder end to the month helped clothing and footwear sales to pick up further from a poor July. Food sales maintained August's growth but were less good than earlier in the year. Furniture and larger homewares were weaker but health and beauty had another good month. However, consumer confidence is being hit by interest rate rises and financial worries after the banking crisis.
Kevin Hawkins, director general at the BRC, commented: "Sales were slightly better than anticipated because, first, the weather gave a much-needed lift to the clothing and footwear sectors, and second, price promotions and cuts in base prices were widespread across all sectors, resulting in an unprecedented number of buying opportunities."
Helen Dickinson, head of retail at KPMG added: "The acid test will be the lead up to Christmas, which will be challenging for many retailers, as the low growth backdrop looks set to continue. However, for the moment, spending patterns are not being affected by the wider credit crunch issues."
BRC/KPMG retail sales monitor UK - September
Year-on-year like-for-like (September 2007 v September 2006) UP +3.0%
Year-on-year total sales (September 2007 v September 2006) UP +4.9%
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