'Best October sales growth' for seven years

Retail sales have posted their best annual growth for October since 2002, according to the latest measure from the British Retail Consortium (BRC).

However, the Retail Sales Monitor - produced along with professional services provider KPMG - notes that the results must be viewed in the light of October 2008's "dreadful" figures, which were recorded as the UK economy began a three-month decline to the end of the year.

Sales rose by a 3.8% on a like-for-like basis - which ignores the impact of any stores opening or closing in the previous 12 months - compared with October 2008, while total sales rose by 5.9%. In 2008, both of these measures were down on the previous year.

While food sales growth - one of the best-performing sectors throughout the recession - slowed to its lowest rate for 19 months, clothing and footwear showed stronger growth than in September, again partly reflecting the weak showing for October 2008. In addition, non-food, non-store sales - those made via the internet, mail-order and phone - were 18% up on last year.

BRC director-general Stephen Robertson pointed to the "many uncertainties" of 2010, such as the possibility of rising unemployment and tax increases, but said that retailers were hoping for improved consumer confidence in the run-up to Christmas and into the New Year.

"Shops have already started to battle it out for customers with a string of promotions and discounts," he said.

The release of the monitor coincides with reports today that shoplifting in the UK has risen to record levels, driven by the recession, with Britain suffering the highest value of shoplifted goods in Europe.

IMAGE MAXA/LANDOV/Press Association Images