Supermarkets prove resilient as retail sales rise


brc_robbo_thbThe volume of retail sales in June 2009 was 2.9% up on the same month last year, according to official figures released today.

Stores selling mainly food products saw sales volumes up by 2.6% against June 2008, while non-food stores were up by 2.4%.

The Office for National Statistics (ONS) said sales volumes for the three months to June were also up on the same period a year ago – by 1.3%. Sales volumes for stores selling mainly food were up by 0.7%.

When compared with the previous three months, overall sales between April and June were up by 0.7%. For predominantly food stores, three monthly growth was 1.6%, while non-food stores fell by 0.1%.

BRC director general Stephen Robertson commented: “The official data confirm our findings that June’s retail sales were boosted by sunshine, promotions and discounts. But the wholesale turnaround in consumer confidence retailers are looking for remains elusive.

“The BRC’s Retail Sales Monitor showed the heatwave helped food retailers. It also boosted clothing and footwear sales.

“But fundamentally it’s still a picture of needs versus not-nows, with food retailers proving resilient while much of non-food retailing struggles.

“Given uncertainty about jobs is sure to go on rising well into next year, even the sunny weather can’t provide enough of a feel-good factor to ease customers’ nervousness about spending on big-ticket items.

“Lower mortgage costs and energy prices are leaving a lot of people better off than a year ago. But many still favour saving over spending.”

Richard Lowe, head of retail and wholesale at Barclays Commercial Bank, said: “It is increasingly apparent that declining retail sales have arrested.

“June’s figures indicate a healthy increase month on month and, after a poor performance this time last year, 2009′s summer figures are looking more encouraging.”

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