Another rise in UK retail sales keeps the run going

The BRC said that while growth was broad-based, the home categories were the best performers, rebounding from July while food was the slowest category due to the tough comparatives during the Olympics last year.

The BRC said that taken hand in hand with a recent uptick in consumer confidence, the signs are that many people are feeling a little more positive about the economic outlook and responding well to good deals and new autumn collections alike.

According to the report, the latest figures demonstrate that confidence is “slowly but surely” returning to the high street, although the figures are slightly weaker than the exceptional performance seen in July.

The total rise of 3.6 per cent for last month, which includes changes in store space, was down slightly on the growth of 3.9 per cent seen a month earlier.

Helen Dickinson, director general of the BRC, said: “While these figures don’t quite reach the lofty heights of what was an exceptional July, they’re keeping the good run going and are well above the 12-month average for sales growth.”

She said that non-food had an impressive month, as retailers answered the continuing cautious optimism with good ranges and appealing promotions, especially in their back to school offers and items for the home.

“The category’s performances both in-store and online measure up well against below par showings in August 2012, when shopping took second place to watching the Olympics for many of us,” she said.

“Overall, these are very encouraging figures which maintain the sense that a consumer-led recovery is tentatively taking shape.”

David McCorquodale, head of retail at survey partners KPMG, said a rebound in furniture and flooring sales is significant, particularly in light of the sector’s difficulties last year.

“It’s a positive sign that consumers feel confident enough about the future to make large scale, non-essential investments in their homes,” he said.

“Whether or not these investments are being powered by finance or consumers dipping into their savings remains to be seen – a debt or savings-fuelled spending bubble, of course, would not be sustainable in the long term.”

Back to school spending also boosted sales in August as shoppers stocked up on children’s clothes and shoes in preparation for the beginning of a new term.

Non-food trading was well up on August 2012, when shopping took second place to watching the Olympics.

Fewer distractions from sporting exploits this year meant there was more cooking and gardening, although this still failed to compensate for last year’s stocking up on celebratory goods for the month of sport.

Ms Dickinson said: “Online sales had a strong showing in August, comparing well against a fairly weak July and a record low the previous year, when hearts and minds were captured more by sporting triumphs than shopping.

“Many of us spent less time outdoors than in July and more time browsing and buying end-of-summer offers and new autumn ranges.”

Retailers are now turning their attention to the all-important Christmas season.

Mr McCorquodale added: “If sales continue in this vein we should be optimistic that retailers will enjoy a reasonably healthy Christmas.”

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