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Growth in UK retail sales stalls | |
(about 1 hour later) | |
UK retail sales were unchanged in August compared with the previous month, casting doubt on the strength of the recovery in consumer spending. | UK retail sales were unchanged in August compared with the previous month, casting doubt on the strength of the recovery in consumer spending. |
Sales growth in July was also revised down, from 0.4% to 0.2%, the Office for National Statistics (ONS) said. | Sales growth in July was also revised down, from 0.4% to 0.2%, the Office for National Statistics (ONS) said. |
Food sales growth was more than offset by falls in clothing and footwear. | Food sales growth was more than offset by falls in clothing and footwear. |
To add to the retail gloom, department store John Lewis announced a fall in profits and predicted tough trading conditions in the coming months. | |
Big falls | |
Retail sales rose by 1.3% in June, and analysts had been expecting a third straight month of growth to reinforce hopes that the UK was emerging from recession - as hinted by other data. | |
There were signs of growth in some sectors. August food sales rose by 0.7%, while non-store retailing - which includes internet, telephone and mail order shopping - and repair shops saw sales grow by 1.1%. | |
But this was not enough to offset bigger falls in other areas. | But this was not enough to offset bigger falls in other areas. |
All non-food sectors, apart from household goods, suffered declines in sales. The worst hit were textile, clothing and footwear shops, where sales dipped 1.3%. | All non-food sectors, apart from household goods, suffered declines in sales. The worst hit were textile, clothing and footwear shops, where sales dipped 1.3%. |
'Slow recovery' | |
Department store John Lewis added to the downbeat retail outlook when it announced a 20% fall in profits for the first half of the year, and said it expected the coming months to be tough. | |
"We expect trading conditions for the remainder of 2009 , and into 2010, to continue to be difficult," said chairman Charlie Mayfield. | |
He forecast a "slow, drawn-out economic recovery." | |
Reflecting the growth the overall growth in food sales, however, the group did see stronger performance in its supermarket chain Waitrose. | |
Earlier this month, figures from the British Retail Consortium suggested that retail sales fell in August, by 0.1%. | Earlier this month, figures from the British Retail Consortium suggested that retail sales fell in August, by 0.1%. |