UK retail sales rise 1.8% in July

FURNITURE retailers saw  their best growth in three years  during July as the housing  market and wet weather lifted  business.
The British Retail  Consortium (BRC) said the  largely cooler, wetter second  half of the month turned the  attention of shoppers indoors,  helping sales of furniture and  homewares after several  months in the doldrums.
Across the retail sector, sales  in July were 1.8% higher than a  year ago on a like-for-like basis,  despite a slowing in growth in  food and clothing as heatwave  conditions were replaced by  wet weather.
BRC director general Stephen  Robertson said: “July showed  us both sides of the British  summer and gave some parts of  retailing a much-needed boost.”
As well as the poor weather  and tentative signs of recovery  in the housing market, the BRC  noted that furniture and  homeware departments were  boosted by people using  holidays to improve their  homes rather than to go away.
Sales in the furniture and  floor coverings sector showed  the best growth since May 2006,  although this was achieved  against a very low base in July  last year.
Home accessories and house textiles also reported a strong uplift, helped by strong demand for clearance bargains.
While today’s overall headline figure was stronger than the 1.4% seen in June, the BRC cautioned that last month’s comparisons with 2008 were much easier. Across the May to July period, like-for-like sales were 0.8% higher.
Mr Robertson added: “There is a sense among some commentators that the beginning of the end of recession is here but rising unemployment and job loss fears will continue to hold back the widespread return of consumer confidence for some time yet.”
The BRC said after June’s heatwave boost, clothing sales fell back to just below their 2008 level. Further and deeper discounts were needed to tempt shoppers to add to their summer wardrobes, although in the cooler and very wet second half, new autumn and winter lines made a good start.
Food sales growth fell back, partly reflecting lower food price inflation and a shift to cheaper wintery foods from salads, prepared deli and barbecue foods.

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