Tourist spending sends retail profits to a 9-month high
RETAIL sales grew the fastest since January last month as shoppers dug deep to boost Britain’s growth prospects.
Brexit not cause of price rises - Retail expert
A sharp fall in the pound encouraged tourists to splash out on luxury items such as jewellery and watches, while cooler weather brought relief for embattled fashion chains as their autumn and winter ranges were snapped up.
Food sales also enjoyed their fourth straight month of growth, with higher raw materials costs yet to feed through to higher prices at the checkouts.
The British Retail Consortium-KPMG sales monitor showed total sales up 2.4 per cent on the previous October, or 1.7 per cent on a like-for-like basis.
Tourists are greatly contributing to the rise in retail profits
Online sales of non-food jumped 11.1 per cent compared with 9.2 per cent growth the previous year and now represents 22.2 per cent of total non-food spending, up from 21.1 per cent.
A decent BRC survey would indicate that consumers are currently still prepared to spend
BRC chief executive Helen Dickinson said: “October’s figures paint a more positive picture of retail sales. Notably, fashion saw a reversal of recent fortunes, as new seasonal ranges drew shoppers.
“Electronics was strong resulting from new product releases and was a significant driver. This was compounded by international shoppers’ spending, which has soared since July as tourists take advantage of the weak pound to buy luxury goods at bargain prices.
The falling pound allows tourists to spend more money
"Despite the inflationary pressure gradually building in the supply chain, retailers are effectively managing the additional cost burdens and continue to entice their customers with great choice and value.”
KPMG’s head of retail Paul Martin hailed October as an “online shopping bonanza”.
The top performer was health and beauty gift sets, suggesting shoppers had already begun the search for festive bargains.
Shoppers are also already on the hunt for the perfect Christmas gift
Howard Archer, chief UK economist at IHS Global Insight, said: “A decent BRC survey would indicate that consumers are currently still prepared to spend. For now, they are still benefiting from decent fundamentals, including record high employment and reasonable purchasing power.
“In the near-term, there is the possibility that some consumers will bring forward purchases of big-ticket items in the belief that their prices are likely to rise.”