–BRC: UK May Like-for-Like Sales +0.8% y/y; Total +3.0% y/y
–BRC UK Mar-May Like-for-Like Sales +1.2% y/y; Total +3.4% y/y

LONDON, (MNI) – UK retail sales values rose in May in comparison to
a year ago, helped by store discounts and warmer weather in the second
half of the month.

Like-for-like sales in May climbed 0.8% on the year, with total
sales up 3.0%. This followed an Easter-distorted 2.3% fall in
like-for-like sales and a 0.2% drop in total sales during April,
according to the British Retail Consortium.

The BRC said discounts, warmer weather and May 2009’s weak sales
growth boosted the headline numbers.

Food sales and non-food sales returned to growth in May, following
declines April, according to the BRC data series.

Three-month average like-for-like sales through April were up 1.2%
on the year with total sales up 3.4% on the same basis.

The BRC data tend not to correlate in any straightforward way with
the official data.

National Statistics’ April retail sales numbers, for example, did
not reflect the weakness shown in the BRC figures. The official data
recorded retail sales values up 4.8% on the year and volumes up 1.8%, or
4.2% and 3.0% respectively excluding auto fuels.

The BRC’s fairly robust May outturns are also sharply at odds with
the CBI’s latest distributive trades survey, which reported May sales
balances falling to a 14 month low of -18 from 13 in April.

The discrepancy between the CBI’s May survey and the BRC one may
be due, in part, to the survey dates. The CBI’s May survey was conducted
between April 27 and May 12 and the BRC one covered the four weeks from
May 2 to May 29.

“The sunnier second half of May provided a welcome boost to overall
sales. The warmer weather combined with discounts and promotions
encouraged spending on clothing, footwear, outdoor DIY and gardening.
The run-up to the World Cup helped sales of televisions, though this was
largely discount-driven. With the tournament getting closer, there
should be a further uplift to other football merchandise such as flags
and replica kits,” Stephen Robertson, Director General, British Retail
Consortium, said.

Helen Dickinson, head of retail at KPMG, said consumers remain
jittery ahead of the emergency Budget on June 22.

“Consumer confidence has clearly improved since last year’s lows.
But there’s still plenty of uncertainty, which is making customers
nervous about buying expensive goods, such as furniture, despite
widespread reductions. This month’s emergency Budget should provide more
clarity,” she added.

“Furniture and floor coverings was once again the worst-performing
sector, highlighting the reluctance of consumers to commit to big-ticket
purchases while uncertainty over the future looms,” she said.

–London newsroom: 4420 7862 7491; email: ukeditorial@marketnews.com

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