-BRC: UK Sep Like-for-Like sales 1.5% y/y; Total 3.4% y/y

LONDON (MNI) – UK retail sales growth picked up sharply in
September on a year ago, posting its strongest outturn since last
December, as colder weather gave clothing and footwear sales a boost,
according to the latest British Retail Consortium/KPMG Retail Sales
Monitor.

The BRC/KPMG survey showed headline like-for-like sales were up
1.5% in September on a year ago, the fastest rise since December 2011,
and total sales were up 3.4%. Non-food sales growth was 0.3%
like-for-like in the three months through September, with food sales
rising 0.7%.

September’s figures represent a bounceback from the weak figures
seen in August when headline like-for-like sales growth fell 0.4% on
August 2011, the weakest outturn since April.

The BRC said the recovery from last month was driven by clothing
and footwear, which saw its strongest growth since last Christmas,
boosted by the colder weather, which drove up sales of autumn and winter
clothing.

“September’s surge in sales was driven primarily by customers
buying winter woollies as the arrival of autumn/winter fashions heralded
the end of an often wet summer and ‘back-to-school’ drove increases in
children’s clothing and shoes,” David McCorquodale, Head of Retail at
KPMG, said.

The BRC said there were also some signs of a revival in the home and
furniture market.

In terms of food sales, “September’s sales mirrored the changing
weather,” Joanne Denney-Finch, chief executive of retail specialists IGD
said.

The sun at the start of the month boosting food and grocery sales
but sales drifted down as the month progressed.

Recent retail sales data have been lacklustre with the CBI
Distributive Trades survey reporting only a slight rise in sales volumes
in the year to September.

Official retail sales data suggest sales volumes have been broadly
flat over the summer months, with the Jubilee and the Olympics impacting
sales.

Commenting on today’s data, Stephen Robertson Director General at
the British Retail Consortium, welcomed the return to modest sales
growth.

“Difficult has become the new norm. Customers are still cautious
but less fearful than they were. The squeeze on disposable incomes has
eased for some and, along with lots of discounts, left them feeling it’s
time to stop postponing spending. Retailers will be hoping this modest
boost strengthens as Christmas approaches,” he said.

-London newsroom 0044 207 862 7491; email:wwilkes@marketnews.com

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