London bucks retailer gloom
Central London retailers are defying the economic gloom, according to figures from the British Retail Consortium.
Retail sales in June were 8.7 per cent higher than a year ago, although the rate of growth is weaker than in 2007 when an increase of 11 per cent was reported.
Footfall was also higher than in June 2007, although down on May’s figures, suggesting tough times ahead.
Rocketing fuel costs deterred customers from visiting out of town shopping complexes, instead making them turn to London’s thoroughfares, including Oxford Street.
Early sales, heavy discounting and a string of hot and sunny days also tempted shoppers, according to the report.
Tourists continued to bolster retail sales, with West Europeans deciding to take advantage of a strengthening Euro. Japanese and American customers kept a tight reign on spending, according to the report, due to a weaker dollar and yen.
The biggest winners were clothing retailers, with designer outlets performing particularly well on the back of ruthless price cuts. Food retailers also reported a modest rise, although these figures were artificially boosted by inflation.
But other retailers fared poorly. Homeware stores continued to report tough conditions, as the housing slowdown impacts on big ticket furniture sales.
According to Stephen Robertson, Director General of the British Retail Consortium, the mood among central London’s consumers is different to that in the rest of the UK.
“Much of this is being driven by the most widespread price cutting in recent history but the contrast with the rest of the UK, which has experienced negative like-for-like growth in three of the last four months, is stark,” he said.