 Retail sales in central London in June were 14.4% higher on a like-for-like basis than a year ago, when sales had risen 3.5%. Earlier clearance sales this year, the hot weather and stronger consumer confidence than in the UK helped boost sales. Retail footfall fell
back in June to below its year-earlier level, after a small year-on-year increase in May. People preferred to watch the World Cup and Wimbledon rather than travel to shop in the hot weather.
 Sterling's weakness continued to attract overseas visitors, especially from western Europe, China and the Middle East. Tourists were more cautious but attracted by clearance discounts.
Clothing and footwear sales were mixed. The hot weather and clearance events helped, but some people had already bought in May's sun.
Stephen Robertson, Director General, British Retail Consortium, said: “These are impressive results – the strongest London sales growth since October 2006. The heat and sports events meant fewer people were out shopping in central London, but they were spending more per visit. Customers in the capital are less pessimistic than the rest of the UK and significantly less so than this time last year. The weak pound is still attracting tourists. Clearance sales were another major factor. Many were earlier so new season ranges were ready for Middle Eastern visitors before they return home for an earlier Ramadan."
“Economic uncertainty combined with the VAT increase and public sector job cuts on the way, suggest growth of this magnitude is unlikely to continue.”
Helen Dickinson, Head of Retail, KPMG, said: "A similar trend to last month, highlighting that London’s consumers are currently being less impacted than those in the rest of the country in terms of levels of confidence about the future. High levels of promotional activity in some of the larger destination stores helped drive footfall and sales. The comparison with weak results last year also helped boost performance and, while the World Cup did impact performance on individual days and provide a welcome uplift for some, it did not shift overall spending patterns much one way or the other."
Image: London shopping
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