DIYWEEK.net

UK retail sales values fell 0.6% like-for-like in August, against a 1% rise in August 2010, according to the latest BRC-KPMG Retail Sales Monitor.
Non-food sales fell further below their year-earlier level, with footwear and homewares showing the largest declines, despite further promotions. Food sales remained similar to that in July.

On a total basis, sales were up 1.5% compared with the same month last year, when sales rose 2.8%.

BRC director general Stephen Robertson said: "The retail sector's performance for August has been essentially flat, particularly bearing in mind the increase in VAT which will be responsible for some of the growth in spending. It remains a tale of two halves. The food sector has proved more resilient but non-food showed a marked decrease in sales year-on-year."

He added: "The riots were not widespread or prolonged enough to have a significant impact on these UK-wide figures. Poor consumer confidence, high inflation and the on-going squeeze on personal finances remain the biggest threats to the retail sector. Sales of big-ticket items are very dependent on discounting and many retailers' margins are being cut to the bone."

Non-food, non-store sales showed the best growth since April, with sales rising 12.5% on last year, after a relatively weak 9.6% rise in July.