–BRC: UK Sep Like-For-Like Sales 0.3% y/y; Total 2.5% y/y
–BRC: UK Jul-Sep Like-For-Like Sales 0.1% y/y; Total 2.2% y/y
–BRC: Food Sales Remain Robust, Clothing Suffers Due Weather

LONDON, (MNI) – UK retail sales rose 0.3% on a like-for-like basis
in September from the same month of 2010, according to the British
Retail Consortium-KPMG’s monthly sales monitor, but there was a major
difference in fortune for food and clothing sales as temperatures picked
up towards the end of the month.

Food sales growth was similar to that seen in July and August, the
BRC said while non-food sales improved a little but conditions
reportedly remained challenging.

On a sector-by-sector basis, homewares showed a modest uplift,
though sales were still often deal-driven, BRC said.

Larger purchases in particular were hit by fragile consumer
confidence and the weak housing market. Clothing sales dropped off
sharply in the end-of-month heatwave.

Non-food non-store (internet, mail-order and phone) sales growth
fell back after picking up in August. Sales were 10.1% up on a year ago,
down from 12.6% in August and well below the 19.1% seen in September
2010.

Stephen Robertson, Director General, British Retail Consortium,
said underlying conditions remain weak.

“Short-lived factors such as the weather and discounting are
influencing sales not any fundamental change in how customers are
feeling. Hot weather at the end of September boosted spending on food
and drink, but clothing sales slumped as the sun undermined interest in
winter ranges”.

Helen Dickinson, Head of Retail, KPMG, said:

“While we were seeing reasonable growth during the first weeks of
September, hopes for a major improvement on recent months were dashed as
the exceptionally hot weather kicked in during the final week, when
hitting the shops was well down our list of priorities.

“The food sector proved again to be more resilient than other
sectors although, with the new academic year starting, schoolwear and
shoes also did well. Sales of home accessories, house textiles as well
as toiletries and cosmetics showed signs of improvement. However, with
consumers’ incomes being squeezed from all sides, many shoppers continue
to steer clear of big-ticket items.

–London newsroom: +44 20 7862 7492; email: ukeditorial@marketnews.com

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