Summer Discounts and Uncertainty Dampen UK Retail Sector

  • Retail sales remained flat in August
  • Summer discounting and poor footfall hit in-store sales hard
  • UK retail sales decreased by 0.5% on a like-for-like basis from August 2018
  • Non-food retail sales declined 3% over three months to August
  • Food sales increased 0.5% on a total basis but decreased 0.3% on a like-for-like basis
  • BRC-KPMG sales monitor reveals lowest 12-month average at 0.4%
  • Greater economic and political uncertainty affecting consumer demand

UK retail sales remained stagnant in August, according to the BRC-KPMG sales monitor. Summer discounting and poor footfall have negatively impacted in-store sales, particularly affecting non-food items. The 12-month average dropped to a record low of 0.4%. Food sales saw a slight increase, but this was offset by a decline in non-food sales. Retail CEOs urged the government to address the broken business rates system to prevent further store closures and job losses.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about UK retail sales figures, citing specific percentages and comparing them to previous years and averages. It also includes relevant quotes from a source with expertise in the field.
Noise Level: 3
Noise Justification: The article provides relevant information about UK retail sales and offers some analysis on the factors affecting them, such as economic uncertainty and summer discounting. However, it lacks in-depth exploration of the underlying causes and potential solutions beyond calling for government action.
Financial Relevance: Yes
Financial Markets Impacted: UK retail sector
Financial Rating Justification: The article discusses a decline in UK retail sales and its impact on the high street businesses, which can affect companies’ performance and financial markets related to the retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, and the situation described is related to economic performance of retail sales rather than an extreme event.

Reported publicly: www.retailsector.co.uk