Warm weather boosts June sales

UK retail sales values rose 1.2 per cent on a like-for-like basis from June 2009.

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The British Retail Consortium reported that on a total basis, sales were up 3.4 per cent against a 3.2 per cent increase in June 2009.

Non-food non-store sales (internet, mail-order and phone sales) in June rose again with a 17.3 per cent jump over June 2009, down from 21.9 per cent in May.

The hot weather also boosted outdoor toys and leisure, but indoor toy sales were reported to be more difficult. World Cup merchandise sold well, albeit mostly low-value.

Stephen Robertson, director general, British Retail Consortium, said: "This is decent sales growth, mainly explained by good weather and earlier summer clearances. The performance is better when you remember the comparison is with a similarly strong performance in a sunny June a year ago.

"In non-food retailing it was a mixed picture. TVs were really the only football-related item that generated significant spending. Other items, flags and souvenirs, were high profile but relatively low value.

"The Budget is affecting confidence but it won't be until the impact of the measures is actually felt that it really hits spending.”

Helen Dickinson, head of retail, KPMG, commented: "Trundling along is an apt description for this month’s sales. While the World Cup did impact performance on individual days and provide a welcome uplift for some, it did not shift overall spending patterns much one way or the other.

“While the emergency Budget has delayed any impact of the VAT rise until later this year/early next, the effect of the wider fiscal tightening measures on consumer spending remains to be seen. The risk is all on the downside."

Commenting on the non-food non-store growth, Stephen Robertson, director general, British Retail Consortium, said: “Another good month’s growth – the second highest of the year. Sunny weather and early clearance sales boosted clothing and outdoor goods.

“Starting from a low base, non-store retailing continues to grow by double-digits as it gains more familiarity and confidence with customers.”


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