UK BRC-KPMG: September Suffers As Summer Ends

--BRC July Like-for-Like Sales Down 0.2% y/y; Total Sales Up 0.7%

     LONDON (MNI) - UK retail sales declined in September, falling for the first

time in five months on a like-for-like basis, the latest British Retail

Consortium (BRC)-KPMG survey showed.

     Growth was impeded by a slowdown in the food sector, as well as continued

disappointment in the non-food segment, the survey suggested. 

     September like-for-like sales declined by 0.2% from a year ago, when they

increased by 1.9% y/y. Furthermore, total sales growth of 0.7% was below the

3-month and 12-month averages of 1.2% and 1.3% respectively and also the lowest

since October, excluding Easter distortions. 

     --FOOD SALES DISAPPOINT

     After the warm weather and the World Cup meant strong grocery sales,

bolstered by added enthusiasm for picnics and barbeques, food sales increased by

2.3% on a like-for-like and 3.4% on a total basis over the three months to

September. This was below the 12-month total average growth of 3.7%. 

     --ONLINE NON-FOOD SALES BELOW TREND

     Whilst in store non-food sales declined by 2.7% on a total basis, this was

in line with the 12-month total average decline. Online sales growth of non-food

products also disappointed, growing by 5.4% in September, the weakest growth

rate since January. It also was below the 3-month and 12-month averages of 6.7%

and 7.1% respectively. 

     --TOUGH OPERATING CLIMATE

     "These figures lay bare the difficult operating environment for the retail

industry. After a challenging August, constrained consumer spending in September

has resulted in the weakest sales growth for five months," Helen Dickinson OBE,

Chief Executive of the British Retail Consortium, said.

     Furthermore, on top of groceries retreating, "The historically reliable

back-to-school push did not elevate apparel sales. Instead the latest tech

launches were a rate source for optimism," Paul Martin, UK Head of Retail at

KPMG, said.

     Future events could prove pivotal for retailers as 2018 draws to an end.

"The final golden quarter of the year marks the ultimate test for many players,

but retailers must also successfully navigate: the upcoming government Budget,

Black Friday, Christmas, and of course Brexit," he added. 

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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