The latest figures from the British Retail Consortium and KPMG’s sales monitor have revealed that sales rose by 4.1% last month.
“Retail sales in August improved, particularly on July’s poor performance,” confirmed Helen Dickinson OBE, chief executive of the British Retail Consortium. “Sale of non-food products had their best month since February, particularly for health and beauty products as retailers continued to invest in new, exciting brands, and customers splurged on self-care. The sales figures reflected the improvement in consumer confidence in August, and retailers hope this general upwards trend will carry on.”
However, she added a word of caution: “Easing inflation will certainly be welcomed by consumers, but as the rate of price rises falls, so will the extra spending needed by consumers. As a result, sales growth may fall in the coming months, even if volume growth does not. Furthermore, high interest rates and high winter energy bills will put pressure on many households to spend cautiously. Retailers are combatting this through a clear focus on great value for consumers, expanding budget ranges, and finding ways to cut costs where possible.”
Added Paul Martin, UK head of retail, KPMG: “August saw a bounce back in retail sales growth to 4.1%, which will come as a relief for many retailers. As summer comes to an end, retailers will have their sights firmly set on the most crucial period of trading as consumers get ready for Christmas. Inflation levels are heading in the right direction, albeit much more slowly than hoped, and savvy shoppers will be Christmas bargain hunting much earlier this year, as price continues to drive decisions and consumers seek out good deals to stretch their budgets.”
Top: Sales rose by 4.1% in August reported the British Retail Consortium.
