UK retail sales edged up only slightly in August compared with the same month last year, despite the slump in takings in the immediate wake of the London bombings in July 2005.
Retailers experienced a 2.5% increase in like-for-like sales, according to the latest British Retail Consortium (BRC) research, but the low total of last August made for a disappointing comparison.
Hampered by the cooler weather since the heat of July, the three-month trend rate of growth fell to 2.7% from 4.1% in August.
Food sales were particularly affected by the August downturn, while clothing retailers’ takings slowed as clearance sales ended.
However, the milder weather in August encouraged more shoppers to purchase homewares and furniture.
The relatively gloomy outlook was underlined by a rise in the number of consumers pessimistic about the UK’s economic prospects, following the recent interest rate rise.
This lack of optimism has led to an increase in the proportion of major purchases and larger items sold through discounts.
Kevin Hawkins, director general of the BRC said that the outlook for the next few months is uncertain.
“While the modest recovery in some non-food product categories is obviously welcome, the comparatives with August 2005 are very weak and price competition is as keen as ever.
“Any suggestion that we are seeing a significant and sustainable return to the sort of sales growth we were reporting two or three years ago is simply not supported by the evidence.
“The recent increase in interest rate has yet to work through to consumer spending or the housing market.”
