Latest data from the BRC-KPMG Retail Sales Monitor for September reveals a 0.7% increase in like-for-like sales on the previous year. On a total basis, sales were up 2.4%, against a 3.4% increase in September 2012 and in line with the 12-month moving average.
The British Retail Consortium (BRC) said the growth was driven by electricals and leisure goods, while food experienced a decline in like-for-like sales.
BRC director general Helen Dickinson said:
“The BRC-KPMG data shows that while total retail sales have continued to grow this month, it has been the weakest growth so far this year if you exclude Easter distortions. Grocery sales have been particularly hard-hit.
“However, we have seen strong demand for children’s footwear and clothing, benefiting from the back-to-school period, and the continued improvement in the UK housing market is beginning to make a difference in the retail sector, shown by a strong performance in home accessories.
“Online sales were again the stand out performer, growing by double digits, and contributed strongly to non-food sales such as electricals and leisure items.”
KPMG head of retail David McCorquodale said: “These figures are a reality check and will make retailers nervous as we enter the run up to Christmas. Unseasonably warm weather stifled sales of autumn and winter collections in September and the recovery in home related items flattened.
“The slowdown of the food and drink sales performance reflects the battleground for market share amongst the grocers.
“The stark fact is the retail recovery remains fragile and in the lead up to Christmas retailers, who are generally carrying less stock than in prior years, will need to manage promotional activity carefully to maintain margins.”
Source: BRC/KPMG