22 May 2008


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Slowdown in retail sales as food takes a hit


Industry statistics

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Retail sales rose by 1.5% in the three months to April when compared with the previous three months, according to Government figures out today.

The latest figure compares with 1.9% growth in the three months to March.

Food stores saw growth of just 1% between February and April, compared with 1.9% growth in the previous three-month period.

Non-food stores recorded growth of 1.7%. Household goods dropped by 1.9%, the largest fall in this sector since May 2005.

But non-food was buoyed by sales of mobile phones and computer games.

Between March and April, sales dropped by 0.2%.

Food stores were down by 1% while non-food stores rose by 0.2%.

British Retail Consortium director general Stephen Robertson said: “This official data confirms our own findings that overall retail sales growth is slowing significantly.

"Our analysis also shows customers are cutting back on non-essentials with sales of clothing, footwear and household goods particularly hard hit.

“The increase in the total value of food sales is partly explained by price increases.

“For years we’ve been used to static or falling retail prices thanks to competition, economies of scale and lower commodity prices meaning the effects of new cost and regulatory burdens didn’t reach customers.

"With cost pressures mounting it’s clear the Government now needs to think very carefully about what impact new burdens will have on the price of goods.”

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