Annual High Street Sales Up 4.3% In October

The quantity bought in the retail industry in October 2014 increased by 4.3% compared with October 2013. It is the nineteenth period of consecutive year on year growth.

The monthly comparison shows that sales were up 0.8% compared with September 2014. All sectors except non-store retailing reported growth. Clothing stores grew by 0.5% but as they experienced a fall of 5.9% in September the difference is not yet made up.

Average shop prices fell b y 1.5% over the year, the biggest fall since December 2002. The main reason was a fall in prices at petrol stations where prices were at their lowest since the end of 2010. The amount spent in retail in October 2014 increased by 2.8% compared with October 2013 and by 0.7% when compared with September. The average weekly spend in retail was estimated to have been £7.1bn in October 2014 compared with £6.9bn in October 2013 and £6.8bn in September.

Online sales accounted for 11.2% of all retail sales in October, a fall of 0.1%. Online sales increased by 7.5% compared with October 2013, the lowest year on year increase since November 2012.

Slow Growth Continues On High Street

Year on year High Street sales volume's slow growth continued into February 2014. The increase was 3.7% compared with February 2013 and the monthly volume increased 1.7%. Year on year sales value increased by 3.5% compared with February 2013 and the monthly comparison shows growth of 1.3% according to figures from the ONS.

Average prices fell by 0.2% compared with February last year as fuel fell by 4.4%. Deflation last occurred in September 2009 with a decrease of 0.8% and main contributor then was fuel with a fall of 5.8%.

Online sales increased by 12.4% in February 2014 on the annual comparison and on the monthly comparison with January 2014 the increase was 2.5%.

Shop Price Deflation At Last

The BRC-Nielsen Shop Price Index has reported deflation for the first time since February 2007. It means that shop prices are now lower than they were a year ago. The year-on-year deflation of 0.1% was driven by a fall in food inflation over recent months. Food inflation fell to 2.3% in August. The monthly figures were basically unchanged.