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- BRC: Retail sales volumes rose 1% in the four weeks ending August 24
UK retail sales rose last month as warm weather encouraged Britons to buy food for social occasions, new figures revealed.
The British Retail Consortium revealed that retail sales volumes rose at an annual rate of 1 percent in the four weeks ending August 24, compared with 4.1 percent growth in August 2023.
Helen Dickinson, chief executive of the charity, said food sales were boosted by people organising barbecues and picnics for family and friends.
Growth: The British Retail Consortium revealed that retail sales volumes rose at an annual rate of 1% in the four weeks ending August 24
He also noted that purchases of clothing, health and beauty products were boosted by attending social events or taking vacations, while college students took advantage of discount offers to purchase new computers.
However, Dickinson said demand for other back-to-school items was “weaker than usual” and many families were opting for second-hand goods.
The BRC chief called on the government to “fix the broken business rates system” in its next budget, due on October 30, to help kick-start investment and economic development.
Separate figures released by Barclays on Tuesday showed credit card spending rose 1 percent in August after declining in the previous two months.
Growth was driven by the biggest increase in grocery spending since March, much of it on raw, whole food ingredients or at specialty food and drink outlets such as butchers and delis.
This was further supported by multiple low-cost airlines offering last-minute holiday deals, helping travel agents and airlines to have their best months since February and March respectively.
Both Ryanair and Wizz Air set new passenger records in August, with the former carrying 20.5 million customers and the latter 6.2 million.
Barclays also attributed the growth in retail sales to Britons indulging in “affordable luxuries” despite continued cost-of-living pressures.
Karen Johnson, retail director at Barclays, said consumers were increasingly willing to pay more for “mood-boosting products” such as cosmetics and sweets.
She said: “This is a much more immediate version of the long-standing tendency of consumers to make room in their budgets for memorable experiences, such as tickets for next year’s Oasis tour, which went on sale over the weekend.”
Ahead of the festive season, Barclays found that seven in ten Britons expressed greater confidence in their household finances.
However, 35 percent of consumers said they believe goods will be more expensive than a year ago, while 19 percent are concerned about keeping pace with rising costs.
Johnson added: “While cost-conscious shoppers continue to rein in discretionary spending to offset rising prices, especially in the run-up to Christmas, it is encouraging to see Britons feeling noticeably more confident about their personal finances.”
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