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Growth in UK retail sales slowed in August as the cost-of-living crisis caused consumers to reign in spending, figures showed on Tuesday.
The latest British Retail Consortium-KPMG sales monitor showed retail sales increased 1.0% year-on-year in August, above the three-month average growth of 0.7%, but below the 12-month average of 2.5%.
Sales had grown 2.3% in July following a heatwave-related boost to clothing and picnic food sales.
In the three months to August, food sales rose 3.8%, outpacing the 12-month average growth of 0.8%. Over the sale period, non-food retail sales dropped 2.0%, well below the 12-month average rate of growth of 4.0%.
In August, food sales increased annually, whereas non-food sales were in decline.
The figures are not adjusted for inflation, however, the BRC noted.
‘Given that both the August sales price index and July consumer price index show inflation running at historically high levels, the small rise in sales masked a much larger drop in volumes once inflation is accounted for,’ it warned.
BRC Chief Executive Helen Dickson commented: ‘While inflation in retail prices is lower than general inflation at over 10%, this still represents a significant drop in sales volumes. For the first time in recent months, clothing sales were sluggish as summer events ended, and parents held back on back-to-school spending. White goods and homeware remained hardest hit, but products such as air fryers and knitwear did get a boost as thrifty consumers prepare for soaring energy bills.
‘With some predictions of inflation reaching 20% in the new year, households and retailers are preparing for a particularly tough time ahead. As retailers face into their own rising costs from all directions, they continue to do all they can to protect customers from price rises.’
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