UK : Unseasonably mild weather hit clothing & footwear sales

The British Retail Consortium is the lead trade association representing the whole range of retailers, from the large multiples and department stores through to independents, selling a wide selection of products through centre of town, out of town, rural and virtual stores.
UK retail sales rose 1.0% on a like-for-like basis, compared with October 2006, when sales were up 2.6%. October’s growth is the weakest since the 0.5% reported in November 2006 and is below the average for both 2006 and 2007 to date.
The three-month trend rate of growth fell to 2.0% from 2.1% in September for like-for-like sales, and to 3.9% from 4.0% for total sales, reflecting the continuing growth of retail space.
Kevin Hawkins, Director General, British Retail Consortium:
“This result reflects the downward trend in sales growth that we have been anticipating as a consequence of higher mortgage interest rates and other pressures on household incomes.
It points to some challenging trading conditions for many retailers in the run-up to Christmas, which are likely to persist until interest rates are reduced and consumer confidence begins to improve.”
Helen Dickinson, Head of Retail, KPMG:
“A disappointing month for many retailers. The 3% total and 1% like-for-like increase in sales over the same period last year represents the worst performance since November 2006, which itself was the worst month of that year.
Clothing had a poor month, which after the pick-up in September will have left many nervous as we lead in to the crucial Christmas trading period. That coupled with an increasing aversion to big-ticket purchases does not bode well. Despite this backdrop, food continues to hold up well.”
Clothing:
Sales fell back below year-earlier levels after September’s boost. Womenswear was hit hardest by the unseasonably mild weather which meant warmer outerwear and accessories sold well only on the few chillier wet days, many having already bought them in the colder September.
Trade was mixed across sectors and from day to day as the weather changed, but with jeans and knitwear often outperforming other areas.