Retail sales 'rose in July'

Date: 20th August 2009

Small retailers in the UK enjoyed a solid month's sales in July, latest official figures have indicated.

Sales were found to have increased by 3.3 per cent last month compared with July 2008 - with volumes also 1.6 per cent up.

Particularly impressive gains were noted among clothing and footwear stores, which experienced an increase of 7.3 per cent.

This was partly counterbalanced by the 5.5 per cent fall found for household goods stores.

Over recent months, small business owners in the retail sector have faced declines in sales volumes due to the credit crunch, with customers less willing to spend than before.

However, the latest retail figures suggest that a turnaround in fortunes is occurring.

The sunny weather experienced in July, along with discount sales, were cited as factors behind these increases by Richard Lowe, head of retail and wholesale at Barclays Commercial Bank.

He added: "The healthy increase year on year, and over the last three months, confirms that figures are moving in the right direction. After bottoming-out recently, today's increases will encourage many struggling high street businesses.

"There is however a mixed message across the entire sector and household goods have firmly been off shoppers recent purchasing agenda."