Retailers can look forward to a “healthy” Christmas, it has been claimed, after new figures from the British Retail Consortium revealed growing consumer confidence about family finances.
Latest sales data show how furniture and flooring sales rebounded during August as shoppers were more prepared to spend on big-ticket items.
David McCorquodale, head of retail at survey partners KPMG, said the results would increase optimism that it can continue in a similar vein.
The furnishings sector enjoyed its best month since March 2010 and helped drive an overall 1.8% rise in like-for-like retail sales last month, the BRC said.
“It’s a positive sign that consumers feel confident enough about the future to make large-scale, non-essential investments in their homes,” he said.
“Whether or not these investments are being powered by finance or consumers dipping into their savings remains to be seen a debt or savings-fuelled spending bubble, of course, would not be sustainable in the long term.”
The rebound in furniture and flooring sales was significant, he added, particularly in light of the sector’s difficulties last year.
Although the figures were slightly weaker than the exceptional performance seen in July, the body said the performance showed confidence was “slowly but surely” returning to high streets.
August’s total monthly increase of 3.6% was down slightly on the growth of 3.9% seen a month earlier.
Back to school spending also boosted sales in August as shoppers stocked up on children’s clothes and shoes in preparation for the beginning of a new term.
Non-food trading was well up against below par showings this time last year, when shopping took second place to watching the Olympics.
“If sales continue in this vein we should be optimistic that retailers will enjoy a reasonably healthy Christmas,” Mr McCorquodale said.
The data follows more positive news on house prices, with Courier Business revealing how research by property analyst Hometrack had observed a gathering of pace in the market.
l The positive news comes ahead of a new review which is expected to recommend the introduction of a one-off tax on major retail chains and leisure groups to pay for high street regeneration.
Making companies with a UK turnover of more than £10m paying a 0.25% levy would create a fighting fund of £550m to sponsor start-ups and other high street ventures, according to former Iceland and Wickes chief executive Bill Grimsey.
He is launching an alternative review of the future of the high street to that of retail guru Mary Portas.