UK retail sales see surprise rise in October

UK retail sales rose 0.6% in October from the month before  the Office for National Statistics (ONS) has announced.UK retail sales see surprise rise in OctoberAnalysts had expected sales to fall, but a run of pre-Christmas sales and promotions helped to lure shoppers in, with prices down 0.4% in the month.

The ONS said the food sector had seen a boost in October, driven mostly by price promotions.

Sales volumes in small stores rose 5.3% year-on-year – the biggest increase since November 2004.

This rise was put down to shoppers avoiding larger stores in out-of-town centres in order to cut down on petrol costs.

Despite the better than expected sales figures, a number of updates from High Street retailers indicated that many chains are still struggling in the current economic environment.

Kate Davies from the Office for National Statistics says the figures are part of a bigger picture that indicated a change in people’s shopping habits.

Fashion chain French Connection said its UK sales had slowed because of the recent unseasonably warm weather, and that it was unlikely to meet its annual profit forecasts.

Mothercare reported a half-year loss of £81.4 million after problems with its UK operations. The company is already planning to close 110 of its UK stores and it has now announced a review of its whole UK business.

November 16, 2011  Tags: , , ,   Posted in: Business Growth, Business Win, Growing Business, Growing Economy, Uncategorized

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