Strong retail sales growth but 2010 outlook uncertain
RETAIL sales enjoyed their strongest October growth for seven years with retail sales values rising 3.8 per cent on a like-for-like basis, according to the British Retail Consortium (BRC).
But the BRC warned that last month’s strong performance was compared to October 2008, when sales fell 2.2 per cent due to turmoil in the financial markets hitting consumer confidence.
The continued slowdown in food price inflation saw food sales growth sink to its slowest pace in 19 months at 2.6 per cent in the three months to October.
The growth in non-food sales values continued to accelerate to two per cent on a like-for-like basis. This marked the second month in a row that non food sales – which constitute more discretionary spending – outperformed the food sector.
Stephen Robertson, director general at the BRC, said: “With less than 50 days to go before Christmas, retailers will be hoping improved consumer confidence will be sustained during the festive period and beyond.”
But he warned that 2010 has many uncertainties, including the likelihood of rising unemployment and tax increases.