UK like-for-like retail sales fell 0.9 per cent in July compared with the same month last year.

Like-for-like sales have been down year on year in four of the past five months, although total sales were up 1.7 per cent in July.

The British Retail Consortium reported that changeable weather hit sales last month, as in June, when like-for-likes dipped 0.4 per cent.

The BRC said underlying trade remained tough as consumers reined in their spending due to the credit crunch. Furniture and homewares suffered particularly badly, as well as clothing and footwear.

BRC director-general Stephen Robertson said: “Frivolous shopping is off the agenda as most customers concentrate on value and durability and there are few signs the slowdown has bottomed out yet. This is a good time for consumers to take advantage of the wide range of discounts and promotions available to them.”