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Figures released by the British Retail Consortium show that sales on a like-for-like basis were slightly above the 8.1 per cent annual increase in February 2007 and the 6.2 per cent fourth quarter 2007 average.

Overseas shoppers 

Retail footfall rose above its year-earlier level for the first time since October. The gain was against a sharp fall last February, however, when snow had kept shoppers at home.

Western Europeans remained the main overseas shoppers while spending by Eastern Europeans was not as strong as last year. Americans were still discouraged by the weak dollar.

Food and beauty products benefited from Valentine’s and Mothers’ Days. Clothing and footwear sales remained generally difficult, but accessories and upmarket fashions held up.

Homewares, especially larger purchases, continued to be hit by fragile consumer confidence.

Overage spend rose only slightly 

Stephen Robertson, director general of the British Retail Consortium, said that the figures suggested the best like-for-like growth since October but added that this was not because individuals were feeling better off or spending more.

He pointed out that average spend rose only slightly while total shopper numbers were up on last February, when many were put off by a bout of wintry weather.

“An early Mothering Sunday and improved city bonuses helped retailers but there has been no let-up in the need for price cuts and promotions to tempt hard-up customers to spend,” Robertson concluded.

Discounting and clearance activity 

Helen Dickinson, head of retail at KPMG, said that the like-for-like sales for central London continued to outperform the remainder of the UK, but also showed a high level of volatility.

She explained that this was driven by high levels of promotional, discounting and clearance activity, as well as significant variations in the performance of individual retailers.

“Consumer confidence remains fragile, however, and the London performance certainly is not being replicated in other cities across the country,” Dickinson said.

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Related links

• British Retail Consortium