Retail figures buck doom and gloom trends

Consumers
show no signs of curbing their spending as retailers enjoy another good month.

The
BRC-KPMG Retail Sales Monitor for July recorded growth in like-for-like sales
of 6.1 per cent and growth of 8.4 per cent for total sales.

These
figures are slightly higher than the June figures of 5.6 per cent growth in
like-for-like sales and 7.8 per cent growth in total sales.

The
three-month trend rates of growth improved for the eighth consecutive month
from 5.7 per cent to 6.2 per cent for like for like sales and from 7.9 per cent
to 8.5 per cent for total sales.

The
start of the main holiday season has shown some impact on sales in stores with
those located in seaside resorts enjoying the biggest benefits.

The
good weather has boosted sales for seasonal items such as fans, swimwear and
barbecue products.

The
delay in timing of many of the summer sales has seen strong sales growth in
most stores compared to last year.

Amanda
Aldridge, head of retail at KPMG said, “Despite another good month and last
week’s cut in base rate, retailers remain nervous about how long current growth
levels can be sustained.”

She
added that following strong performance earlier in the season the summer sales
have contributed to July’s growth, coming later than last year. She said that
some retailers have bought in extra product for the sales this year to satisfy
shoppers’ appetites in contrast with last year when many retailers started the
sales earlier to offload surplus products following poor weather earlier in the
season.

By Katie Hawkins

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