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exiges

Retail Sales Crash -2.1%

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http://www.brc.org.uk/brc_news_detail.asp?id=1971&kCat=53&kData=2

UK retail sales values were 2.1% lower on a like-for-like basis from May 2010, when sales had risen 0.8%. On a total basis, sales were down 0.3%, against a 3.0% increase in May 2010.

Food sales slowed markedly after April's strong growth and non-food sales were also much weaker. As the weather cooled, consumers' underlying uncertainty about jobs and incomes resurfaced, hitting clothing, footwear and homewares. Big-ticket purchases suffered most and were often promotion-led.

Non-food non-store (internet, mail-order and phone) sales growth slowed in May, but the comparison was with a very strong May 2010. Sales were 10.4% higher than a year ago, compared with 13.7% in April but over 20% in May 2010.

Stephen Robertson, Director General, British Retail Consortium, said:

"After two previous months distorted by the later Easter and extra bank holiday, this is a more realistic reflection of how tough conditions on the high street really are.

"The first half of May was better than the second, when the weather turned unseasonably wet and cold in many parts of the country, but customers' fundamental reluctance to spend is now clear to see. Households' disposable incomes continue to be squeezed by uncomfortably high inflation and low wage growth, while uncertainty over the effects of Government cuts is hitting consumers' sentiment about future finances.

"The VAT rise since last year is flattering the sales figures for most non-food goods, while renewed weakness in the housing market made life particularly difficult for retailers selling furniture and household goods.

"This new evidence of weak spending shows how important it is to support this soft patch in the recovery by keeping interest rates low."

Helen Dickinson, Head of Retail, KPMG, said:

"For the first time in a number of months we have a clearer picture of the underlying trend without the distortions of the timings of Easter and bank holidays, and it doesn't make for happy reading. The last half of the month was the most challenging given the good weather and World Cup last year. Across the month, virtually all nonfood sectors experienced negative like-for-like sales to varying degrees reflecting consumer's reticence to spend as the disposable income squeeze tightens its grip. This, combined with falling margins driven by a greater focus on price, lower average transaction values and increasing manufacturing costs is leaving many retailers coping with a "double whammy" impact on cash flows."

Edited by exiges

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All of which can only mean one thing: Must be interest rate decision time shortly.

Is there a round table of VIs pumping out random nonsense each month designed to keep IRs down and their Bentleys on the road? Gettin' a bit obvious now, fellas

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I also have had enough of the BRC. The y/y figures they release are utterly useless and provide absolutely no useful information. They only serve to attempt to pressure the MPC to prevent IR rises and keep house prices up.

Last time I checked there was a world cup last year and there was a large boost in retail sales in May in the lead up to it. Comparing this year’s figures to last may is utterly ridiculous.

(http://www.guardian.co.uk/business/2010/jun/17/world-cup-retail-sales-boost)

Just as last month’s +5.2% and the month before -3.2% were also utterly useless and completely nonsensical.

It will give the BBC etc a nice excuse to campaign for no IR rises and high house prices.

CBI realized sales was above expectations again for May, the m/m figures from the ONS will provide a better insight without the huge distortion of the world cup last year.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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