London's like-for-like retail sales slipped 1.8 per cent in October, outperforming the UK average, which was down 2.2 per cent, although the gap between the two narrowed.
According to the BRC-Nielsen London Retail Sales Monitor, the banking crisis and housing market slump depressed consumer confidence, leading to the worst London figures since summer 2005. London retail like-for-likes climbed 11 per cent in October 2007.
Footfall was lower than in the past few months, but still just higher than a year ago. This contrasts with the year-on-year decline in footfall in the UK as a whole.
The BRC report said the new Westfield London shopping centre falls just outside the central London area and did not open until October 30, so had very little overall effect on the figures.
Homewares continued to be hit, while clothing and footwear struggled. Food sales and premium beauty ranges held up.
BRC director-general Stephen Robertson said: “London's long-standing sales superiority over the rest of the UK is being rapidly swept away. The financial crisis has now rocked consumer confidence in parts of the workforce that it had previously not reached. Even London's high earners are worried about job security and the ailing housing market, so are reining in their spending.
“Hard-pressed households and retailers in London will hope the Bank of England's recent bold rate cuts will boost confidence in the run-up to Christmas.”
No comments yet