Though there has been a downturn in retail sales in UK but London has yet to experience it, says a report by the London Retail Consortium (LRC).
‘The sharp slowdown in sales growth in the UK as a whole has yet to have its full impact in London which has been boosted by the spending power of shoppers visiting from the rest of the UK and overseas,’ said Kevin Hawkins, director of the London Retail Consortium.
The LRC report, prepared by British Retail Consortium and consultancy KPMG, said retail sales in the capital rose by 11.0 per cent on the year in October, a strong rise considering the fact that in October 2006 sales had already posted a 15.8 per cent gain.
Retail footfall slowed but remained above its year-earlier level and stronger than the decline in the UK as a whole.
Clothing and footwear sales slowed, due to mild weather, although designer fashions and accessories outperformed, the report said.
Beauty products sold well, but furniture and home wares less so, with large purchases affected by consumer caution.
Visitor numbers remained higher than a year ago, although Europeans took over from Middle Eastern tourists as the main spenders, due to the stronger euro. Conversely, the number of American visitors decreased as the dollar weakened.
Although Londoners’ higher average earnings may keep the capital’s spending buoyant, Hawkins said retailers are unlikely to entirely escape the effect of the squeeze on disposable incomes in the run-up to Christmas.
‘It’s early days in the context of the crucial Christmas trading period and retailers in the capital will be hoping the trend of the past month continues,’ said Helen Dickinson, head of retail at KPMG.
