Small shops benefit from 'sunshine sales'

Date: 24th July 2009

A retail industry group has welcomed the release of upbeat official figures.

According to the Office for National Statistics (ONS), sales on the UK high street rose by 1.2 per cent in June.

Previous forecasts for the report had predicted an increase of just 0.3 per cent.

The rise suggests that the current economic downturn could be close to bottoming out, with consumers willing to spend again and the benefits being felt at grass roots level.

Hot weather and smart discounting by many smaller shops could also have provided an extra boost.

Stephen Robertson, director general of the British Retail Consortium (BRC), said: "The official data confirm our findings that June's retail sales were boosted by sunshine, promotions and discounts. But the wholesale turnaround in consumer confidence retailers are looking for remains elusive."

He added: "Given uncertainty about jobs is sure to go on rising well into next year, even the sunny weather can't provide enough of a feel good factor to ease customers' nervousness about spending on big-ticket items."

Official data due out later this morning on UK economic output are expected to show a decline over April-June of around 0.3 per cent.

This follows a January-March drop of 2.4 per cent - itself the sharpest three-month decline experienced in Britain for around half a century.

The BRC is a trade association representing both chain and independent shops.