London shops boom but UK sales stutter
LONDON shops enjoyed June sales 14.4 per cent higher than a year ago, according to research out today.
The shopping boom far outstrips the rest of the UK, where like-for-like growth was just 1.2 per cent, and represents the strongest sales growth in the capital since October 2006.
Research by KPMG and the British Retail Consortium (BRC) suggests that early clearance sales, hot weather and rising consumer confidence contributed to the jump.
However, BRC director general Stephen Robertson warned the sales surge could be short-lived.
“Economic uncertainty combined with the VAT increase and public sector job cuts on the way, suggest growth of this magnitude is unlikely to continue,” he said.
Footfall in London shops fell 4.1 per cent in June compared to last year, after a small year-on-year increase in May. The research suggested this was due to the World Cup and Wimbledon, and the warm weather in May encouraging shoppers to make summer purchases earlier.
However, those who did shop in June spent more per head than in June 2009.
“London’s consumers are currently being less impacted than those in the rest of the country in terms of levels of confidence about the future,” said KPMG’s head of retail Helen Dickinson.
Tourists in the capital continued to spend thanks to clearance discounts, but were more cautious than in previous months. The most prolific spenders came from Europe, China and the Middle East, said the report.
FAST FACTS | RETAIL IN LONDON
● Retail is the third-biggest sector of the London economy, after real estate and finance, according to the London Retail Consortium
● The Greater London Assembly estimates that nine per cent of London’s jobs are in retail