Retail sales in central London in August were 5.9% lower, on a like-for-like basis, than a year ago, when sales were up 8.6%, the lowest sales growth in four years. Retail footfall in August fell further below its year-earlier level. Better weather than last August’s downpours meant people often preferred outdoor leisure to indoor shopping. Sterling’s weakness against the euro continued to attract overseas visitors, but those from the Middle East returned home earlier this year, as Ramadan began earlier.
Clothing and footwear weakened and homewares and furniture were generally tough, especially for big-ticket items.
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Stephen Robertson, Director General, British Retail Consortium, said: “These results don’t suggest the recovery is under way. This is the lowest London sales growth since August 2005. This looks like a dramatic drop, but it’s compared with a strong August 2008 – the third highest figure last year. The rest of the UK saw poorer growth last August and so a better result this year.
“Central London footfall saw the biggest drop for over a year and a half. The pound is less weak than it was, eroding London’s appeal for overseas visitors. Like domestic shoppers, tourists are also more cautious. Clothing and footwear and big-ticket household goods suffered the biggest sales falls. People who bought summer fashions during June’s heatwave and warmer clothes in July’s downpours didn’t buy more and customers are still reluctant to make major commitments.”
Helen Dickinson, Head of Retail, KPMG, said: “A really disappointing month for the capital’s retailers with like-for-like sales falling by 5.9% in comparison to a rise of 8.6% in August 2008. This was the first month when London’s like-for-like sales fell this year. The timing of the bank holiday, which fell into August’s results for 2008 but not in 2009, did not help the overall figures. The results for the month and the rest of the year need to be considered in the light of the performance last year, which continued to weaken as the year progressed. Negative like-for-like sales on the back of negative like-for-like sales in the same month in the previous year will present many retailers with some serious challenges around controlling costs and generating cash.”
Image: London shopping
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