Industry Sector Weekly by Lloyds TSB

After benefiting from good weather and positive affects of the World Cup, retail sales are starting to show signs of weakness. Headwinds for UK retailers

After benefiting from good weather and positive affects of the World Cup, retail sales are starting to show signs of weakness. Disappointing UK BRC retail sales statistics for July released earlier this week, illustrate just how challenging an environment retailers face over the coming months. This is especially the case for non-food retail, which remains a discretionary part of the shopper’s purse. Comments from the BRC’s latest release highlight large ticket items and footwear at the epicentre of weakening demand. Like–for-like sales on an annual three month moving average basis in July were a sluggish 0.3% for the non-food segment compared with 1.6% for food.

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