Official figures from the Office for National Statistics (ONS) paint too rosy a picture of the state of retail, the British Retail Consortium (BRC) has said.
The BRC said the information it is getting from its membership and its own “highly regarded” statistics show total retail sales values up 1.5 per cent on a year ago, meaning customers are actually buying less when the impact of inflation is factored in.
The ONS released figures for retail sales that showed an increase in value of 5.4 per cent compared to October 2010 and an increase in volume of 0.9 per cent on a year ago. The office also found that food stores sales volumes increased year on year for the first time since April 2011 and were up 0.3 per cent in October 2011.
“This is the first year on year increase in this sector since April 2011 when sales volume increased by 1.7 per cent,” said an ONS spokesperson.
But BRC director general Stephen Robertson poured scorn on the ONS’s optimism. He said: “Most retailers won’t recognise the overly positive picture being painted by these ONS results. The reality is disposable incomes are down on a year ago and customers are cutting back.
“Even food sales are suffering as people cut back or switch to cheaper brands in an effort to balance their household budgets. Stores are competing hard for what customer spending is available but consumers are overwhelmingly gloomy. Sales that happen come at the cost of reduced margins as retailers cut prices while facing higher business costs.”
The consortium once again called on government to act.
“We need the chancellor [of the Exchequer] to support households and businesses by holding back the costs he’s responsible for,” said Robertson.
“He should scrap the increases in fuel duty planned for next year and reduce the threatened 5.6 per cent business rates rise. At a time when youth unemployment has passed the one million mark, promoting growth in a sector where under 25s make up a third of the workforce should be a priority for the government.”
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