The British Retail Consortium (BRC) reports a positive close to the summer retail season, with the latest ONS Retail Sales Index figures showing a 3% increase in value and a 1.2% rise in volume.
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Commenting on the data, Dr Kris Hamer, Director of Insight at the BRC, 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."
Despite these gains, Dr Hamer emphasised that retailers continue to face significant financial pressures:
"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'."
She added that government support is crucial for sustaining the sector:
"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."
The BRC continues to monitor market trends and provide guidance for its members, offering insights, data benchmarks and forums for discussion. Retailers remain cautiously optimistic as the sector heads into the autumn period, although concerns about rising costs and upcoming fiscal policies remain a pressing challenge.
More information:
British Retail Consortium (BRC)
[email protected]
www.brc.org.uk
