18/06/2009 - Shops see sales volumes fall in May
New figures from the Office for National Statistics have revealed the pressure on clothing and footwear stores last month when retail sales volumes fell.
Between April and May, retail sales volumes fell by 0.6%, and while there was a 0.6% rise in total sales volumes in the three months to May compared with the same period the previous year, this was still the lowest growth since December 1995.
Sales volumes at clothing and footwear stores declined by 1.9% over the month, while the fall for "other" stores - including sectors such as photography and sports - was 3%.
Analysts said that the result was well below market forecasts for a 0.3% increase, although it was slightly tempered by figures for online retail sales being better than expected in recent months.
Vicky Redwood, of Capital Economics, said: "We wouldn't be surprised if this marked the start of a period of rather weaker sales growth than of late. The credit crunch-driven nature of the slowdown so far appears to have primarily hit spending off the high street.
"But as the deteriorating labour market and future tax rises hit household incomes more generally, we expect a prolonged period of weakness in both retail and non-retail spending."
Copyright © Press Association 2009
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