October Shopping Spree Raises Hopes That Retailers will Lead Britain out of Recession
Friday, November 13, 2009 15:35The value of goods sold on the high street surged at an annual rate of 3.8% last month, fuelling hopes that spending in the run-up to Christmas could help to drag the economy out of recession.
Figures from the British Retail Consortium showed that the rise in like-for-like sales is the biggest in October in seven years and is up from a 2.8% increase in September. Overall sales values also rose at the fastest pace ever since April as shops started to slug it out for Christmas custom by introducing promotions and discounts. A poll conducted by Populus for The Times, also indicates that partial recovery in confidence about the economic outlook next year.
However, the BRC said that its figures were flattered slightly. Analysts expected that the retail sales will also be boosted over the coming months as consumers take advantage of the lower 15% rate of VAT, which will rise again at the beginning of January.
Improvements in the housing market helped to boost sales of furniture and flooring, while the digital switchover in the North West led to a pick-up of sales of televisions in the region. Online, mail-order and telephone sales, which account for 4% of all retail sales, rose at an annual rate of 18% for the third-biggest increase this year, suggesting that the strike by postal workers had failed to significantly dent consumer demand for non-store goods.
Despite the encouraging figures, the BRC remained cautious about the outlook for next year.
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