Responding to the latest ONS Retail Sales Index figures, which showed sales up 3% by value, and up 1.2% by volume, Dr Kris Hamer, Director of Insight at the British Retail Consortium, said:
“August closed out a bright summer of retail sales on a high note, with volumes up for the third month in a row. The prolonged sunshine, bank holiday and interest rate cut all helped to boost sales, especially for clothing and books. People are also spending more on their homes, with furniture seeing a boost for another month following a long period of decline.
“Even if this sales growth continues, it would not be nearly enough to mitigate the mass of costs hammering the industry since last year’s Budget. Business confidence remains weak. Earlier this summer, 56% of CFOs described their feelings about trading conditions over the next 12 months as “pessimistic”. And, there is little sign of improvement in the run up to Christmas, especially with the Budget falling so close to Black Friday and fears of potential further tax rises. Government can help improve confidence by ensuring business rates reforms deliver a meaningful reduction for retailers and that no shop pays more. This will allow retailers to invest more in jobs and stores, and most importantly, protecting customers from the increased costs filtering down to them.”
