August sees retailers suffer worst sales of year

Published: 04 September, 2012

Hopes of an Olympic boost in spending were deflated after figures show the sector suffered its worst sales of the year in August, however, party food and drink saw a "mild boost".

According to figures from the British Retail Consortium, UK retail sales values were down by 0.4% from August 2011, on the back of 0.6% the preceding year.

On a total basis, sales were up 1.6%, against a 1.5% rise in August 2011, but in reality the net effect of the games is viewed as "minimal".

The most noticeable impact from the Olympics was felt online, which saw growth of just 4.8% in August - the lowest since the monitor started collecting online data sales in October 2008.

Stephen Robertson, director general of the British Retail Consortium, said: "There's no evidence here of any Olympic boost to retail sales overall. Sadly, apart from April - distorted by Easter timings - August saw the worst sales growth this year.

"Hot weather and the Olympics did help sales of party food and drink but that was more than offset by a really weak performance for non-food goods.

"It's clear people were absorbed by the magnificent Olympics and had little interest in shopping, especially for major items. Usually reliable online sales suffered, putting in the worst sales growth since we started the measure four years ago. Some retailers told us online activity was particularly thin in the evenings. If people weren't watching television they were more likely to be following the sport on PCs and mobile devices than shopping.

Robertson added: "As summer gives way to the all-important Christmas run-up, retailers will be hoping sales that didn't happen in August have been postponed and not lost entirely."

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