Wet Weather Maintains UK Retail Sales Up in July

 

According to the British Retail Consortium (BRC), with the wet weather propelling demand for home ware goods and furniture, retail sales surged in July 2009, reported BBC.

 

Throughout the UK, like-for-like sales – pulling out the effect of opening of new stores – surged by 1.8% in July 2009 from the same month in 2008. The July’s increase was higher from the 1.4% rise recorded for June. Total sales value, including new floorspace, surged 3.6% in July 2009 in comparison of July 2008.

 

At the beginning of July, summer food sales as well as clothing clearances were benefited from the sunny weather, while the wet weather towards the end of the month fuelled the sales of home ware goods and furniture.

 

The growth in sales of home wares and furniture in July 2009 was the highest year-on-year growth since 2007. The cooler and wetter latter half of the month turned the consumers to pay attention indoors, thus assisting home ware and furniture sale to boost. It is noted that this category of goods have continuously been under pressure throughout the recession. Indications are such that people are utilizing holidays to make their homes better instead of spending on going away from home. Lucrative discounts also played crucial role in boosting sales.

 

Food and clothing sales continued increasing in July, but with a lower rate than June. Overall sales through mail order and Internet were 20% higher in July 2009 from July 2008, on account of clearance discounts.

 

Although figures might suggest that British consumers have started to become more confident realizing the improving economic environment, the BRC is still cautious about the retail outlook in the country. It warned that mounting unemployment is proving a major barrier for more extensive revival of consumer confidence.

 

Nevertheless, more-than-expected rise in retail sales, which is the second highest in July 2009 after April’s 4.6% increase, further proves that the worst phase of the recession might have passed away, atleast for retailers.

 

According to a Research Analyst at RNCOS, “There are enough evidences indicating the end of recession, but still job loss and surging unemployment are posing a big threat to the British retail industry as these are expected to hold down consumer confidence for some more time.”