UK retail sales rebounded in October as shop prices fell at their fastest pace in three months with price cuts boosting consumer spending.

The balance of companies reporting increased sales over those citing a drop rose from the balance of 9 to 11, with 37% firms reporting increased sales and 26% a fall, according to data released by Confederation of British Industry. A separate study by the British Retail Consortium showed an index of the price of goods in stores fell 1.37% in October from a year ago, the steepest decline in the survey’s history.

Price fell in clothing and footwear, following mid-season sales, and in “heavily discounted'' DVDs and videos, mainly in areas where large retailers and supermarkets have a considerable market share.

The volume of sales climbed 1% in September, compared with a revised 0.7% increase a month earlier, the National Statistics office in London said. The CBI survey gave the highest reading of 61 for sales of footwear and leather. Improvement in clothing is down to better sourcing, which is allowing sales to rise and margins to grow.

Growth is still, however, below normal level for the time of year and the underlying trend is still downwards. Retailers still expect sales growth to pick up slightly further in November, with the expected balance of 12.

Herbert Hainer, Chairman and CEO, has viewed the first nine months as very successful and stressed the brand’s dominance at the Olympic Games in Athens and the European Football Championships in Portugal.

 

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