October sun harms retail sales

Unseasonably warm weather hit retail sales last month but the decline was less severe than recorded in September, according to new figures.

The British Retail Consortium (BRC) reports that October sales fell 0.2% from the same period in 2004 when they grew 0.5%. Although revenue was down for the seventh consecutive month, the decline was not as harsh as September's 0.8% dip suggesting hope is on the horizon for the UK's beleaguered high streets.

Despite the gradual improvement, however, trading conditions remain tough. Sales of clothing and footwear evaporated under the unusually mild weather, while sales of big-ticket items continued their funk.

"Another slight improvement in like-for-like sales is very welcome, especially considering the downward trend during the first half of this year," said Kevin Hawkins, director general of the BRC.

"However, we are still just in negative territory and figures are also against a weak comparative in October 2004."

Shoppers are keeping a tight rein on their pockets, Hawkins said, despite the discounts and promotions retailers are launching in advance of the holiday shopping period.

Earlier this week leading retailers criticised the BRC for contributing to the high street gloom.

Hawkins was told that his organisation's warnings of disastrous sales and trading conditions this Christmas are having a self-fulfilling effect by tempting consumers to hold off on their shopping until the last-minute in the hope that stores will start post-holiday sales early.

Hawkins claimed, however, that he simply states the numbers the BRC's research uncovers.