http://www.guardian.co.

uk/business/retail
http://www.statistics.gov.uk/cci/nugget.asp?id=256

Retail Sales
Growth slows in August

Volume of retail sales, all retailers, seasonally adjusted

Year-on-year, the volume of retail sales in August was 0.4 per cent higher than in August
2009. Predominantly food stores decreased by 3.5 per cent while predominantly non-food
stores increased by 4.6 per cent. Within predominantly non-food stores there were rises
across all sectors apart from household goods stores which fell by 1.5 per cent. The largest
rise was non-specialised stores at 10.8 per cent. This was the largest rise for non-specialised
stores since February 2000 when it was 11.4 per cent. Non-store retailing increased by 16.6
per cent.

Between July and August total sales volume decreased by 0.5 per cent. Predominantly food
stores decreased by 0.5 per cent while predominantly non-food stores decreased by 0.7 per
cent. Within predominantly non-food stores there were decreases across all sectors apart from
non-specialised stores, which increased by
0.9 per cent. The largest decrease was other stores at 2.1 per cent. Non-store retailing
increased by 2.1 per cent.

Sales volume in the three months June to August increased by

1.4 per cent, compared to the previous three months. Predominantly food stores showed no
growth while predominantly non-food stores increased by 2.2 per cent. Within predominantly
non-food stores there were rises across all sectors, the largest being non-specialised stores at
3.8 per cent. Non-store retailing increased by 6.2 per cent.

Total sales volume in the three months to August was 0.7 per cent higher than the same
period a year ago. Predominantly food stores decreased by 1.9 per cent while predominantly
non-food stores increased by 4.2 per cent. Within predominantly non-food stores there were
rises across all sectors, the largest being non-specialised stores at 10.4 per cent. Non-store
retailing increased by 15.8 per cent.

The seasonally adjusted value of retail sales for August 2010 was 1.9 per cent higher than in
August 2009. For the three months to August 2010, it was 2.3 per cent higher than the same
period a year earlier.

Notes:

1. The August 2010 period covered four weeks from 1 August to 28 August.

2. Retail sales volume is the total takings adjusted for inflation and the value of retail sales is the total actual
takings.

3. All volume statistics referred to above are seasonally adjusted and chainlinked.

4. Sales refer to average weekly sales.

5. The 'All Retailing' estimate includes the sale of automotive fuel.

http://www.freshplaza.com/news_detail.asp?id=66766

UK: Department stores driving retail industry growth

Department stores in the UK continued to boost the retail industry in June,

according to official data from the Office for National Statistics (ONS).

Figures show that non-specialised stores experienced a 10.3 per cent year-on-
year increase in sales volumes in June, while there was a 1.5 per cent hike in
this type of trading between May and June.

Sales volumes at non-specialised retailers in the three months to June grew by

4.2 per cent, representing the largest rise in this sector since September 2007.

Excluding petrol sales, the ONS figures also show that the seasonally adjusted
value of June’s total retail sales across all sectors rose by 3.2 per cent year-on-
year, while volume of sales inflated by 3.1 per cent over the same period.

So what is the attraction of department stores right now? Obviously consumers

can get many items under one roof, which is a real selling point, but there must
be more to it than the convenience factor.

House of Fraser recently reported strong half-year financial results and it

attributed most of the 7.5 per cent hike in like-for-like sales during the three
months to July to its switch of focus to selling own brands.

Matt Chambers, Brand Director at House of Fraser, told Retail Gazette that the
department store has the “strongest branded offer on the high street” and
described the own-brand effect on sales as “huge”.

Combined with this appealing product range is the fact the stores look good.
Referring to Highland Group, which took over the retailer in 2006, Chambers
said: “We updated 2.5 million of the 5.5 million sq ft of retail space in the first two
years of ownership.

“Before the recession we made our stores exciting and attractive to customers.”

ONS data shows the value of the non-store retailing sector was 14.1 per cent
higher than a year ago in June, while volume of sales in this area increased by
14.8 per cent. House of Fraser itself has witnessed significant levels of web
traffic and sales.

Highlighting the importance of the company’s multichannel retail offering, which

will be enhanced later this year with a new service allowing customers to order
online buy pick up in-store, Chambers commented: “We expect our online
operation to double in value next year, continuing the rapid growth it has shown
in the last 12 months.”
With fellow non-specialist store John Lewis reporting continued year-on-year
sales growth since the start of 2010, specialist retailers will be taking note and
attempting to emulate their success.

Source: retailmoves.com

Publication date: 7/23/2010

UK retailers cut waste by half
British Retail Consortium report finds shops send less than 25% of waste to
landfill – down from about 50% in 2005
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• Rebecca Smithers
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Retailers have
been under criticism for the amount of waste they send to landfill. Photograph: David Sillitoe
for the Guardian
UKs retailers have voluntarily halved the amount of waste they send tolandfill compared with
five years ago, a new report reveals today.
Less than a quarter of the discarded food, packaging, bags and building materials produced
by retailers is now sent to landfill compared with almost 50% in 2005, the study from
the British Retail Consortium (BRC)found.
It says retailers are increasingly reducing landfill waste by reusing materials or finding
partners who could reuse them, and by recycling and adopting alternative technologies for
organic waste, such as energy recovery via anaerobic digestion.
But the organisation is urging the government to ensure that its localism agenda and
nimbyism does not hinder retailers from meeting national and European environmental
targets.

The BRC's A Better Retailing Climate Progress Report 2010 also says retailers have
achieved an 18% reduction since 2005 in both energy-related emissions from buildings and
carbon dioxide emissions from transporting goods.
The report sets out the progress made in meeting a set of goals signed by retailers two years
ago, for reducing the environmental impact of their businesses by 2013.
Among the examples of good practice cited are John Lewis's new Cardiff store that recycled
virtually all of the waste produced in its construction. The result was that just 14 tonnes of
waste went to landfill from the construction site, with 99% recycled.

Also highlighted is the world's first zero-carbon store – Tesco in Ramsey, Cambridgeshire –
which opened in December 2009. But the report warns that: "Significant challenges remain,
particularly for stores located in older buildings and shared retail space.
A review of the UK's strategy on waste disposal, launched by Defra in June, is looking at
new ways of dealing with commercial waste and promoting "responsibility deals" with
businesses to drive down the amount of waste created in production and retail. The new
environment secretary, Caroline Spelman, has called for a "zero waste" society, as retailers
face ongoing criticism over the volume of food waste being dispatched to landfill.
But the BRC said retailers needed the government to "help them, rather than hinder" if they
were to take their environmental ambitions further.

Stephen Robertson, BRC director general, said: "Retailers have a proud record of delivering
impressive environmental results on a voluntary basis – without the need for legislation. This
includes helping their customers use 4.6 billion fewer single-use carrier bags between 2006
and 2010, despite a major growth in sales."
He went on: "There could be benefits from more local decision-making. But the government's
localism agenda presents significant challenges to the excellent environmental work being
done by retailers. Many climate change objectives are set nationally and internationally but
often the opposition to schemes, such as wind farms or energy from waste plants, comes
locally.

"We can't let nimbyism get in the way. A national approach is the best way to help retailers
achieve environmental objectives at a local level."
Shock fall in UK retail sales adds to fears of
double-dip recession
August figures for high street spending provide latest evidence that UK economy
is cooling
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UK retail sales
suffered a shock fall of 0.5% in August, fuelling fears of a double-dip recession. Photograph:
Helen Rimell/for the Guardian
Fears that Britain is heading for double-dip recession were heightened today after official
figures showed high street spending fell last month for the first time since the turn of the
year.
Amid signs that consumers are growing anxious about George Osborne's draconian plans to
slash public spending, the Office for National Statistics said that retail sales dropped by 0.5%
in August.

The unexpected dip in consumer activity provided the latest piece of evidence that the
economy has cooled sharply since the middle of the year, casting a shadow over the
coalition government's plans to suck billions of pounds out of the economy in next month's
comprehensive spending review.

Data since the start of the month has suggested that the second quarter of 2010 was a mini-
peak for the economy following six quarters of decline between the spring of 2008 and the
autumn of 2009. The spring recovery – which saw falling unemployment, rising
manufacturing output, strong retail sales and the sharpest increase in overall economic
activity in nine years – came too late for Gordon Brown but provided David Cameron with the
best possible start to his premiership.
In recent weeks, however, the news has become less encouraging. At the start of every
month, the Chartered Institute for Purchasing and Supply provides a snapshot of what is
happening in the three key sectors of the economy: services, manufacturing and
construction. In September, all three pointed to a slowdown in the pace of growth.

The latest CBI industrial trends survey, released today, painted a similar picture. UK factories
expect output to increase over the coming months but at a less rapid rate.
In the housing market, the slowdown has already arrived. With first-time buyers thin on the
ground, activity is running at half pre-crisis levels and prices are falling. The end of the
government's "cash for clunkers" scheme to persuade motorists to trade in old bangers has
led to plummeting new car sales. And, after falling steadily in every month since January, the
number of people out of work and claiming benefit edged up by 2,000 last month.

Today's data added to the sense in the City that the summer was as good as it got for the
economy. James Knightley, analyst at ING, said: "The August UK retail sales numbers are
awful."

But some analysts warned it was unwise to read too much into one month's figures. Vicky
Redwood at Capital Economics said that even after the August fall, retail sales since the
election have averaged a robust 0.4% a month and were likely to be up over the third quarter
as a whole.

Despite slightly weaker order books this month, the Confederation of British Industry believes
it would be wrong to push the panic button. Ian McCafferty, the CBI's chief economic adviser,
said: "The outlook for manufacturing activity seems to have held steady this month. Demand
is still considered to be better than it was in the first half of the year, export order books are
holding up reasonably well and expectations for production growth in the coming quarter
remain solid."

Even so, the warning signs for Osborne are there. The International Monetary Fund has
explicitly warned of the risks of tightening policy too quickly, while the Organisation for
Economic Cooperation and Development – which in May backed early action to tackle
budget deficits– has said developed countries may need to delay their austerity
programmes.
David Kern, chief economist at the British Chambers of Commerce, said today's spending
data was a sign of things to come. "While weaker than expected, the figures are not entirely
surprising, given the squeeze on people's disposable incomes and the pressures facing
consumers as well as businesses. These pressures will inevitably intensify as the
government implements its deficit-cutting programme, highlighting the need to rebalance the
economy towards exports."

As yet, there is little evidence of this rebalancing occurring. Indeed, last week's trade figures
revealed that Britain's current account deficit in the first three months of the coalition's life hit
an all-time high, despite the boost to exports provided by the 20% drop in the value of
sterling since the crisis began in mid-2007.

The risk for Osborne is that he kicks away state support for the economy at the worst
possible moment. There have been tentative signs of weaker growth in the euro area and
the United States – the UK's two biggest export markets – and businesses are still
mothballing investment plans. Meanwhile, households are facing a triple whammy of pay
restraint, inflation and looming spending cuts, making it questionable, according to City
analysts, that the recent pick-up in consumer confidence will be sustained.

In the short term, Osborne will plough on with his plans for the toughest public spending
round since the 1920s. The chancellor will rely on the Bank of England to keep interest rates
at their current emergency level of 0.5%, and to pump more electronic money into the
economy through the process known as quantitative easing. Mervyn King, the Bank's
governor, dropped a strong hint in his speech to the TUC on Wednesday that Threadneedle
Street stood ready to do just that.
But any further evidence of a double dip will add to both economic and political pressures on
the chancellor to think again. His pitch to the public has been that financial markets will turn
nasty unless the Treasury shows it intends to get to grips with the deficit. But markets now
seem to be as concerned about growth as they are about debt, something that has not gone
unnoticed on the opposition benches.

Ed Balls, one of the candidates for the Labour leadership, said in this week's issue of the
Labour magazine Tribune that there were growing concerns about economies around the
world: "While policymakers in the US are asking what more they can do to support their
fragile economy, the UK government is pursuing a deflationary strategy that risks repeating
the catastrophic mistakes of the 1930s and 1980s."
Growth in online shopping at its fastest for two
years
Submitted by Chloe Rigby on June 21, 2010 – 8:30 amNo Comment

Some £4.5bn was spent online in May, as the UK’s e-commerce market grew by 22%
compared to the previous year. The total spent online, according to the latest IMRG Capgemini
e-Retail Sales Index, was equivalent to £73 for every person in the UK.
This is the highest growth recorded by the Index since June 2008, and came in a month when
warm weather and two bank holiday weekends boosted sales. Compared to April of this year,
sales rose by 3%.

Multichannel retailers fared particularly well, seeing growth of 30%, while pureplay retailers
saw like-for-like growth of just 11%. Multichannel retailers also had greater success rates in
converting browsers to purchasers (16% up compared to last year) while like-for-like
conversion rates for online-only retailers grew by 10% year-on-year.

World Cup preparations spurred some significant sales growth. There was a 23% increase in
alcohol sales, a 13% rise in electrical goods sales as well as growth in sportswear sales.

That last category contributed to the 32% rise in online clothing sales, compared to last year.
Within this, accessories sales grew by 69%, while footwear rose by 52%.

Chris Webster, vice president, retail consulting and technology at Capgemini, said:
“Throughout the history of the Index, we have seen a noticeable rise in sales of certain goods
whenever there is a major sports tournament on. This year’s World Cup is no exception, with
online retail as a whole growing by the highest level in two years, and sectors such as clothing,
alcohol and electricals rising especially rapidly.

“It’s good to see that consumers’ spirits haven’t been dampened by concerns over
government spending cuts, and savvy retailers will have embraced the opportunity to draw in
new customers with marketing and price incentives.”

Bruce Fair, managing director of Kelkoo UK, said: “The World Cup is not just a lucrative event
for pubs and bars, these new figures clearly show that online retailers are reaping the benefits
as well. A recent Kelkoo report reveals that online spending is expected to hit £116 million by
the end of stage two, rising to £205 million if England reaches the finals – representing 10.2%
of total World Cup retail spending.”

Tina Spooner, director of information at IMRG said: “With online sales growing at their highest
rate in almost two years, this is good news for the e-retail industry.

“Year to date, the UK e-retail market has grown 14%, which is in line with our predictions for
this year. With recent research suggesting that over half of consumers believe the economy is
now recovering from the recession, it is evident that e-retailers have already started to benefit
from an increase in consumer spending.”
Next warns on low-growth future

The chain is not expecting a "meltdown" in

consumer demand
High Street retailer Next has warned that it is expecting at least three to five years
of low sales growth - as customers remain reluctant to spend.

In a statement to the City, the firm said this muted retail environment should be seen as
"the new normal".

Its comments came as it reported a 15% rise in half-year profits to £213m, with sales up
5% to £1.59bn.

Next also reiterated that higher cotton prices may lead to customers having to pay more
for clothes.

The fashion retailer did, however, make significant gains in the FTSE 100 after
announcing the substantial rise in pre-tax profit, which saw its share price rise by 4.9%.

The news appeared to lift sentiment in other major retailers, with Kingfisher and Marks
and Spencer also rising by more than 2%.

'Sober assessment'
The retailer said it did not anticipate a double-dip recession in the UK nor a meltdown in
consumer spending.

Continue reading the main story

Over the long term Next expects its own revenues will be a fraction of
the kind of increases that it and other retailers enjoyed in the boom
years up to 2007”

Robert PestonBusiness editor, BBC News

• Read Robert's blog
But it said the impact of public spending cuts and fall in the credit availability would be
felt.

"Very little by way of growth in total consumer spending for the foreseeable future" was
expected, Next said.

BBC business editor Robert Peston said that Next's "sober assessment" would be taken
notice of by the government, "partly because it is a respected business and partly
because Next's chief executive [Simon Wolfson] is a Tory peer and close to the prime
minister and chancellor".

Cotton impact
For the six months to the end of July, Next's High Street sales were towards the lower
end of previous guidance, but the Next Directory home shopping business produced a
better-than-expected performance, with a 7.8% rise in first-half sales.

The firm said that the real opportunities it saw for growth were through its website and
catalogue and by opening new shops focussing on homeware and furniture.

In its statement, Next reiterated that higher cotton prices will mean that clothes will
become more expensive.

Devastating floods in Pakistan - one of the world's largest cotton producers - and fears
over this year's crop in China have sent cotton prices surging to 15-year highs in recent
weeks.

Next said cotton prices were 45% higher than this time last year, and that this, along with
the planned VAT rise, meant price rises were "inevitable" in the spring of next year -
predicting increases of between 5% and 8%.

On Tuesday, department store Debenhams warned that the entire UK clothes retail
industry faced higher prices, because of the rising cost of cotton and the weak pound.

Primark has also said that rising costs may eat into its profit margins over the coming
year.
Web retail growth rates have plunged to their lowest level on record, according to latest research from

industry body the Interactive Media in Retail Group (IMRG).

Like-for-like growth for online retailers increased by a meagre five per cent from January 2009 to January

2010, which corresponds to total spending of £4.3bn through the channel.

By comparison, online retailers had a bumper Christmas, with spending reaching more than £5.4bn in

December – an increase of 17 per cent from the previous year and up 3.8 per cent from November.

“While annual growth for e-retail was slow in January, we should factor in the fact that December was a very

strong month for the industry,” said Chris Webster, vice president at Capgemini’s retail consulting and

technology practice.

“Last January, e-retailers’ sales were buoyed up by heavy discounting and promotions that were necessary

to sell stock left over from poor Christmas trading resulting from the impact of the recent move into

recession,” said Webster.

Despite noting that the results are in line with the usual seasonal trend of sales slowing after the festive

season, the study adds that the decline is greater than in recent years.

According to IMRG, the decline in sales was much tougher on multi-channel retailers, where sales declined

by 27 per cent over the period, than for pure-play online firms, which suffered a reduction in sales of 14 per

cent.

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Consumer caution causes slower high street
growth
Shoppers are 'holding their breath' say the CBI, after its survey showed fewer
retailers than expected reporting strong growth this month
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Sales in clothing,
furniture and carpet shops rose at a much slower rate than in February. Photograph: Frank
Baron
High street sales growth slowed in the first half of March amid lingering caution among
consumers, the CBI business group warned today.

A 13% balance of retailers reported stronger sales than a year ago - lower than expected
and well below February's 23%, according to the body's distributive trades survey.

Andy Clarke, chairman of the CBI's distributive trades panel, said a second month of growth
in a row was "encouraging".

But he warned: "With a weak economy and pay freezes for many, consumers are likely to
remain cautious for some time."

While grocers and household goods firms saw a strong performance, sales in clothing
stores, furniture and carpet retailers rose at a much slower rate than in February.

Hardware and DIY stores continued to struggle while sales for the time of year were judged
poor by a net 6% of retailers.

Although a 14% balance of firms expect a stronger April than a year ago, retailers face a
hard slog over the year ahead.
Clarke said: "Conditions will stay tough on the high street for some time and shoppers will be
holding their breath for the budget."
The CBI's survey covers 138 firms and 20,000 outlets, accounting for around 40% of jobs in
the retail sector.

Howard Archer, economist at IHS Global Insight, said the survey was "modestly softer" than
hoped for and said shoppers were cautious ahead of likely tax hikes to tackle the UK's dire
public finances.
He said: "Still serious concerns about the economic outlook and jobs are likely to maintain
consumers' desire to improve their personal finances.

"Consumers will also be wary that further out they are very likely to face higher taxes as part
of the major corrective action that will be needed to rein in the government finances."