Retail sales fall for first time since 2005

Total UK retail sales fell last month for the first time in more than three years last month as cash-strapped consumers spurned non-food items, data from the British Retail Council (BRC) showed.

Sales in October were down by 0.1% from the same month a year ago, the first fall since April 2005, when the timing of Easter caused the decline according to Helen Dickinson, head of retail at KPMG, which helped put the report together.

On a like-for-like basis, which strips out the impact of new stores opened during the period and is used as an indication of how well shops are doing generally, sales fell 2.2%.

The BRC said food and drink was the only sector to show sales significantly up on a year ago.

Clothing and footwear remained poor and often discount-driven, despite colder and much wetter weather than last October, they said, adding that furniture and homeware sales continued declining, even with further discounts and promotions.

“The negative sales figures reflect record low consumer confidence. These are tough times for families and retailers, who are hoping the Bank of England’s bold interest rate cuts will provide a much-needed boost,” BRC director general Stephen Robertson said.

There was one bright spot in the figures, with non-food non-store sales up 16.6% from a year ago, largely due to the rising popularity of internet shopping.

However, online sales fell on the days after the banking crisis hit, as consumers were anxious about their financial outlook.

Source: Sharecast.com