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British retail sales slide back again in August
Shopkeepers suffer as hot weather and sporting events keep shoppers away from the high street
Retail sales slid 0.1 per cent in August after two months of strong growth, resurrecting fears of a renewed slowdown in consumer spending. They had risen 1.8 per cent in July and 1.4 per cent in June, but the figures from the British Retail Consortium-KPMG Sales Retail Monitor showed a turnaround in August.
Stephen Robertson, the BRC director general, said of the numbers "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."
Total sales for the month - including new stores - rose 2.2 per cent, however this figure also undershot previous months. Non-food items, such as furniture, clothing and footwear, suffered most during the month, slipping 0.7 per cent, however grocery spending improved on the month, with a 3.8 per cent gain.
There are growing concerns for the rest of the year, with consumers holding off purchases and facing the return of VAT to 17.5 per cent on January 1, 2010.
WHAT THEY ARE SAYING
Barry Knight, head of retail at accountancy firm Smith & Williamson, the Independent: "Everybody has been talking about green shots, but unemployment is rising and there are still huge personal debt levels in this country and we should be prepared to have another disastrous Christmas." ·
