BRC: retail upturn slows

RECOVERY in the UK retail sector slowed in May, as sales volumes returned to normal following a stellar April, according to the latest figures from the British Retail Consortium (BRC) and accountancy firm KPMG.

Retail sales in May fell 0.8 per cent on a like-for-like basis and rose just 0.8 per cent on a total basis – when sales at retail outlets opened in the past year are included – compared to April, when sunny weather boosted like-for-like sales by 4.6 per cent.

Food sales fell after receiving an April lift from the early arrival of Easter, although they picked up slightly towards the end of the month as a minor heatwave boosted sales of ice cream and soft drinks.

Meanwhile, clothing and footwear sales were down on the same period last year, while sales of high-value homeware and furniture sales remained depressed.

Sales made over the phone, via the internet or by mail order were 7.6 per cent higher than last year, following the fall in in-store sales, but still significantly below April’s year-on-year rise of 12.5 per cent.

Stephen Robertson, director general of the British Retail Consortium said: “Sun and bank holidays don’t a recovery make.This May was always going to be difficult because the comparison is with strong May sales last year which delivered some of 2008’s best growth figures,” he added.

In health and beauty, sales were below their level of last year, despite a boost in sales of suncare and hayfever products with the hot weather.

Leisure goods sales were also slower, with and console sales struggling to keep up with the frenzy surrounding last year’s launch of Nintendo’s Wii Fit. But warm conditions helped the sale of outdoor toys and camping gear.