UK like-for-like retail sales slid 1.5 per cent in September as turmoil in the financial markets hit consumer confidence hard.

According to the latest Retail Sales Monitor figures from the British Retail Consortium (BRC) and KPMG, it is the sixth month out of seven that sales have slipped year-on-year, the worst summer since 2005.

This time last year, like-for-like sales were up 3 per cent.

Cold and wet weather affected sales, although some sunny weekends helped end-of-season clearances.

Food and drink was again the only sector to show any significant growth. Clothing and footwear remained poor and furniture and homewares continued to be well down on last year, suffering their worst performance for at least eight years, according to the BRC.

Decreasing consumer confidence and demands on household budgets meant shoppers looked for discounts.

BRC director-general Stephen Robertson said: “The financial turmoil has further undermined consumer confidence. Food and drink sales grew with hard-pressed families focusing on value ranges. Impulse buying is disappearing as people consider purchases carefully and actively seek out promotions. If you’re after a bargain it’s great news as shops have responded with some of the most dramatic discounts and offers in recent times.

“Retailers will be hoping customers are willing and able to spend for Christmas as an antidote to the current gloom.”