–BRC: UK Aug Like-for-Like Sales 1.0 y/y; Total 2.8% y/y
–BRC UK Jun-Aug Like-for-Like Sales 0.9% y/y; Total 3.0% y/y

LONDON, (MNI) – UK retail sales values rose 1.0% year-on-year on a
like-for-like basis in August as against July’s growth rate of 0.5%, as
weak sales figures a year ago helped boost this month’s readings,
according to the monthly retail sales monitor by the British Retail
Consortium-KPMG.

The like-for-like, year-on-year comparison matched analysts’
expectations, according to an MNI survey which showed a median forecast
for 1.0% growth year on year.

Total retail sales rose 2.8% on the year, stronger than the 2.6%
increase in July and the 2.2% climb in August 2009. Between June to
August like-for-like sales added 0.9% year on year, the same reading as
in the prior month. Total sales rose 3.0% in the latest three months,
also matching the same gains seen in July.

Food retail sales rose 1.8% on a like-for-like 3-month-weighted
average year-on-year basis from June to August, up from the 1.6%
increase seen in the May to July period.

On the same basis, non-food sales rose 0.3% in August, the same
reading as in the month prior.

Although recording broadly stronger growth rates, the BRC report is
at odds with the CBI’s latest distributive sales survey which showed
both sales values and volumes posting big gains in August.

The CBI survey showed UK retail sales volumes and orders rose to
their highest levels since 2007 and 2004 respectively and exceeded
analysts’ expectations

Retailers also reported sales volumes came in at their highest
level since April 2007 and orders placed on suppliers rose to their
highest level since May 2004. The CBI survey also showed clothing sales
hitting their highest levels on record.

The discrepancy may be due to the different dates between which the
surveys were conducted. The CBI survey was conducted between July 27 and
August 11, before a spell of poor weather began on August 12.

The BRC survey was conducted between August 1 and August 28, which
means the poor weather may have had more of an impact than it did in
the CBI report.

Commenting on the data, Stephen Robertson, Director General at the
British Retail Consortium said:

“These results are a slight improvement on last month but this
better growth is compared with a very poor performance a year ago.”

“The good news is sales are still growing but anxiety about job
cuts and tax rises is putting people off making major spending
commitments. Renewed weakness in the housing market particularly
affected the furniture and flooring sector.”

Helen Dickinson, Head of Retail at KPMG added “The impact (of
fiscal tightening measures) will become more apparent as we move into
the higher volume autumn months.”

–London newsroom: 4420 7862 7492; email: wwilkes@marketnews.com

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