October Retail Sales

 

Like for like retail sales for October 2006 have increased 2.6% compared to October 05 when sales were still affected by the July bombings in London and declined by 0.2%.

 

In the three months from August to October, the volume of retail sales was 0.6% higher than in the previous three months to September and compares with an increase of 0.6% at the same time in 2005.

 

The three month trend of growth slowed to 2.5% for like for like sales a drop of 0.2% from the three months to September.  The interest rate rise in August does not seem to have yet fed through to sales and consumers remain pessimistic about economic prospects in the months to come.

 

OCTOBER			AUGUST – OCTOBER
Like-for-Like	Total		Like-for-Like	Total
% change on year ago			% change on year ago
2.6%	5.0%		2.5%	5.2%

 

For the three months to October, the adjusted value of retail sales was 3.9% higher than in the same period a year earlier, the highest such growth since November 2004.  The average weekly value of sales in October was £4.9billion, 3.9% higher than in October 2005.

 

Kevin Hawkins, Director General, BRC said “Sales growth remains on the same restrained level as in previous months and must be set against the continued inflation in the retail industry’s cost base, especially wages, property and energy. There is no sign of anything resembling a boom in consumer spending and no weakening in retail price competition. We therefore see no case for another increase in interest rates.”

 

“This is another month of consistent growth on the high street.  Clothing and footwear have done better this month as the more seasonal weather has started to kick in.  These growth figures are against a slightly stronger comparative than we have seen in previous months which will be encouraging to retailers.  However, the key determinant of the success of 2006 will be driven by what happens next month in the lead-up to Christmas.”  Commented Helen Dickinson, Head of Retail, KPMG.