News Consumer confidence helps lift August sales


Total retail sales in the UK grew by 4.1 per cent in August, according to data from the British Retail Consortium (BRC)-KPMG Retail Sales Monitor. This figure is higher than the three- month average growth of 3.6 per cent. During this period in-store non-food sales were up 1.3 per cent on a total basis, while online non-food sales fell by 1.7 per cent – versus a decline of 6.1 per cent in the same period a year ago. Talking of online, sales growth in household appliances was down last month but still fared better than in July when it was one of the worst performing categories online that month.


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And the sector also had a negative contribution to the total overall sales growth in the UK in August, the BRC-KPMG data showed.


However, taking a more general view of the retail market, BRC’s Chief Executive, Helen Dickinson, said: “Retail sales in August improved, particularly on July’s poor performance. Sales of non-food products had their best month since February; these figures reflected the improvement in consumer confidence in August and retailers hope this general upward trend will carry on.” Paul Martin, UK Head of Retail at KPMG, added: “As Summer comes to an end, retailers will have their sights firmly set on the most crucial period of trading as consumers get ready for Christmas. Inflation levels are heading in the right direction, albeit much more slowly than hoped, and savvy shoppers will be Christmas bargain hunting much earlier this year, as price continues to drive decisions and consumers seek out good deals to stretch their budgets.”


If the government doesn’t implement a freeze, retailers could see an increase of over £400 million a year on their business rates bills


lead to upwards pressure on prices, just as shop price inflation has begun to ease, the group of retailers said. In a recent survey of British Retail Consortium


(BRC) members, 68 per cent of retailers said they were “very concerned” about the rates increase, and 69 per cent said it would place “significant pressure” on the prices paid by customers. Furthermore, all retailers noted that the increase would hold back investment, including in new shops and warehouses.


The letter has been signed by 44 leading retailers


and noted the exceptional challenges facing the industry, and the efforts being made to absorb existing rising costs in the supply chain: “Retailers have worked hard to absorb as much additional cost as possible amidst record cost inflation over the past 18 months. Operating profit margins have significantly contracted as a result, as the CMA reported in July. This effort is starting to bear fruit as BRC’s data shows that shop price inflation fell to 6.9 per cent in August, part of a continuing downward trend from a peak of nine per cent in May.” Helen Dickinson, Chief Executive of the BRC,


Retail leaders call for action to avoid £400m cost hike


Retail leaders, representing over one-third of the retail industry (by employees), have written to Chancellor Jeremy Hunt MP to call for a freeze in the Business Rates Multiplier to be announced at the upcoming Autumn Statement. The retail industry pays over £7 billion a year in business rates. Without action from the Chancellor,


the Business Rates Multiplier will rise in April 2024, in line with the September inflation figure – expected to be over six per cent; this would amount to an increase of over £400 million a year to retailers’ business rates bills. While retailers are doing all they can to help their customers, an increase to costs at this level could


added: “The Chancellor must freeze rates to help keep a lid on retailers’ already high costs. A £400 million rates rise will also cost jobs, harm the economy, and damage the vibrancy of our town and city centres. “While other business taxes, such as Corporation


Tax and VAT, rise and fall with the movements in the economy, business rates must be paid in full whether firms are making a profit or a loss. This makes the difference between retailers being forced to close existing stores rather than opening new ones.”


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