LONDON SALES HELPED BY CLEARANCES AND TOURISTS

16 July 2007

Retail sales in Central London in June were 10.3% higher than a year earlier, on a like-for-like basis, a good gain on top of the 5.3% year-on-year increase in June 2006. 
 
Retail footfall remained below year-earlier levels, according to SPSL. The wet weather and clearance sales did attract customers, who continued to spend more, albeit on fewer trips.

Visitor numbers remained higher than year ago and tourist spending was slightly stronger than in May. Western Europeans and Russians remained the main overseas shoppers.

The stormy downpours hit sales of clothing and footwear. Homewares were mixed and often driven by clearance discounts. Furniture and larger items showed good gains for some, but others noted signs of consumer caution.

Kevin Hawkins, LRC Director, comments:

“This is a good result, reflecting the continued recovery in overseas tourist footfall which began last year. However, it also reflects the decision by several West End stores to bring forward their July clearance sales into June, so the comparatives look better than they otherwise would have been.”

Helen Dickinson, Head of Retail, KPMG, comments:

"Given the weak comparatives of June 2006, which were caused by low footfall during the football World Cup and the hot weather, a strong growth rate in central London is not surprising.  Central London continues to outperform the rest of the UK, but there remains a wide variation in the performance of individual retailers."