Jason Jeffries
21 October 2011
The Office for National Statistics reported that retail sales in the U.K. rose 0.6 percent in September compared to September 2010, driven mostly by a 4 percent jump in non-specialist store sales.
Non-store retailing, including online retailers and catalogues, experienced a 15 percent increase compared to the same month last year, underscoring the continued growth in U.K. shoppers buying online.
In addition, the ONS predicted internet sales would account for 9.6 percent of all U.K. retail spending in September. However, the report also noted that external factors could lead to more conservative consumer spending this holiday season.
"The difficult international situation, the government's austerity measures, and high inflation will continue to put pressure on businesses and consumers and we have to accept that economic growth will remain weak in the next few quarters," said David Kern, the BBC's chief economist.
Richard Lowe, head of retail at Barclays Corporate, said the numbers are still a sign of potential future growth in the U.K. retail industry, which he said could grow by £100 billion in the next year.