Chamber News: Figures show weak recovery In retail

Figures Show Weak Recovery In Retail

Retail sales volumes increased by 2.8% in the year to July and values by 3.1%, according to the latest retail sales figures released by the Office of National Statistics. Over the month there was also an improvement with volumes up 0.3% and values up 0.8%.

Dr Brian Sloan, Chief Economist at Greater Manchester Chamber of Commerce said: “Overall these figures indicate a weak recovery in retail demand over the last twelve months, but much of this has been due to heavy discounting by retailers.

“Although inflation has fallen back, the squeeze on household incomes continues to impact on retailers.

"The detail of the numbers shows that in areas such as clothing and footwear, that continue to see higher levels of inflation, sales volumes have decreased.

"Food retailing has also seen inflationary effects and growth in sales is subdued.

“Sectors of retailing where there have been price falls, such as non-store retailers, household goods and other stores, have seen the best growth as the price cuts tempt shoppers to part with their cash.

"There are signs of improvement but the situation remains fragile and maintaining consumer confidence will be key.

"The retail sector is a key element of economic growth and it will be the focus of the Chamber’s Quarterly Economic Survey that opens on Monday 20th August for quarter 3.”