August's figures drop after two months of growth
Published: 02 October, 2009
UK retail sales values fell 0.1 per cent on a like-for-like basis from August 2008, when sales had fallen, hit by very wet weather. On a total basis, sales rose 2.2 per cent against a 1.4 per cent gain in August 2008.
This August, food sales continued to do better than non-food. Food sales growth edged up only slightly from July’s low. Clothing and footwear weakened further. Homewares and furniture sales fell back below year-earlier levels after July’s weather- and clearance-driven growth.
Non-food non-store sales (internet, mail-order and phone sales) in August were 7.9 per cent higher than a year ago, the weakest since May.
BRC director general Stephen Robertson said: “The stronger figures of June and July haven’t been sustained. It’s clear the deceptively good sales growth of those months was due to summer sun and price cuts – not any major revival in how customers are feeling. What spending we now have is all about value and essentials.
“In August, food sales continued to do better than non-food. After two months of growth, clothing and footwear are well down. People are holding off buying autumn and winter clothing till they actually need it.
“Most people are still very reluctant to spend on expensive household items – unless they’re sufficiently discounted. As we head into autumn, we mustn’t make too much of any positive sales growth because the comparison will be with very weak figures a year ago when total sales growth dipped below zero.”
And Helen Dickinson, KPMG’s head of retail, added: “The improvement in home spending which boosted performance in July did not continue into August. Also, the timing of the bank holiday, which fell into August’s results for 2008 but not in 2009, did not help the overall figures which are below those we have seen for the last couple of months. Like-for-like sales across most sectors, with exceptions such as food and children’s clothing, were negative in August.
“The results for the month and the rest of the year need to be considered in the light of the performance last year, which continued to weaken as the year progressed. Negative like-for-like sales on the back of the same situation last year is leaving many retailers with some serious challenges around controlling costs and generating cash.”
