High street sales flat as retail sector slows

The latest monthly figures from the Office of National Statistics (ONS) have revealed that retail sales figures showed no change in the volume of total sales between January and February.

The flat High Street sales figures follows a period of strong growth - 1.2% between December and January.

Though sales in February were 6.5% higher than in the period last year and the headline growth rate of the Retail Sales Index has shown a third successive increase as a result of robust February sales following on from a strong January trading period.

When adjusted for inflation, the volume of retail sales showed that in the three months December to February was 1.9% higher than in the previous three months - the highest three-monthly growth since June 2002.

Increases in sales volumes for food retailers continued to lag behind those for non-food stores. In the latest three months compared with the previous three months, sales grew by 1.2% for food stores and by 2.3% for non-food stores, with the highest growth being for household goods and other non-food stores.

Mail order and internet companies are reported as the main drivers of sales in the non-store retail and repair sector which is showing an 8.2% increase in sales volume compared to February last year. This is the highest annual increase for this sector since December 2002.

Retailers' takings averaged £4.3 billion per week during February, 5.3%, about £200 million, higher than the same month in 2003.

However, the ONS noted that this represents the lowest year-on-year growth since 1943.

(SP)