UK sales fall 1.5% for September
Published: 14 October 2008
Like-for-like sales values down from September 2007 after a previous rise of 3%.
The British Retail Consortium (BRC) has dubbed this year the worst summer since 2005 after its retail sales monitor revealed that sales have now been lower than a year ago in six of the past seven months.
Retail sales are down 1.5% on a like-for-like basis, from September 2007, when they had seen a 3% increase on the previous year. Total sales change is up 1% for September and 1.4% for the period July to September.
The electrical and electronic sector has seen a slowdown, with large and small white goods proving difficult - although value ranges have done well.
DIY and gardening sales have been hit by a decline in the housing market. Sunny weekends helped outdoor DIY and gardening, with horticulture, garden power and tidying all popular. New decorative ranges helped indoor DIY.
House textiles and home accessories showed some sign of improvement, although were still down on a year ago for the fifth month in a row. Tight household budgets have shunned upgrades or additional extras in favour of replacements, value ranges and core essentials.
Furniture and floorcoverings has experienced its sharpest year-on-year fall in eight years, with even heavy discounting failing to tempt shoppers.
BRC director general Stephen Robertson said: The financial turmoil has further undermined consumer confidence with like-for-like sales now down in six of the last seven months."
He added: "Impulse purchasing is disappearing as people consider purchases carefully and actively seek out promotions."
Helen Dickinson, head of retail at integrated accounting firm KPMG, offered a note of reassurance. "UK retail is not in freefall," she said. "The UK consumer is still spending and total retail sales were up in September on the same period a year ago."
However, Ms Dickinson is aware of a decline and is unsure of the impact over the Christmas trading period, stating that many will be holding their breath."