Retail sales value up 0.8 per cent on last year
Published: 15 November, 2010
UK retail sales values were up 0.8 per cent on a like-for-like basis from October 2009, when sales had risen 3.8 per cent.
On a total basis, sales were up 2.4 per cent against a 5.9 per cent increase in October 2009.
Clothing and footwear sales slowed. Homewares remained tough and often deal-driven, especially for larger purchases. Uncertainty over job cuts and income prospects continued to make consumers careful shoppers, giving priority to essentials and replacements over discretionary items.
Clothing sales showed a year-on-year decline for the first time in almost a year, albeit against a strong October 2009. Womenswear was particularly hard-hit, continuing to lag men’s and children’s wear which both showed growth, though less than in September and August. Colder weather later in the month drove outerwear, knitwear, warm accessories and hosiery. Handbags and jewellery showed gains for some. Halloween costumes were increasingly popular.
Toiletries and cosmetics growth edged up a little further, though sales were often promotion-driven. Cold weather helped skincare but cough/cold did not show any marked gains, due to low incidence so far this year. Fragrances were helped by new launches. Christmas gift sets had a slow start for some, while promotions and offers helped others.
Home accessories sales weakened further, falling below their year-earlier level. House textiles sales growth slowed, despite gains for some as the cold weather boosted duvets, linens and soft furnishings. Lighting, floorcare and kitchenware were brighter spots as consumer uncertainty meant essentials continued to take priority over discretionary and decorative items.
Stephen Robertson, Director General, British Retail Consortium, said: “Unfortunately it’s more of the same for hard-pressed retailers, with weak consumer confidence continuing to undermine growth.
“Growth in food sales, partly created by inflationary pressure from rising commodity prices, has produced a modest increase in overall sales. But any gains made in food continue to be counterbalanced by the non-food sector, where it’s a struggle to convince wary consumers to part with their money. When you factor in inflation, the modest rise in total non-food sales is actually a real-terms decrease.
“Tough trading conditions are unlikely to change in coming months. Our BRC Nielsen Consumer Confidence Survey shows 84 per cent of consumers think the economy is still in recession, while 26 per cent say they have no spare cash. Retailers will be hoping those concerns are at least put on hold for Christmas.”
