London Retail Sales Up 3.7 Per Cent

An increase in retail sales by 3.7 per cent marked a better performance for London retailers in February on a like-for-like basis. The increase of 3.7 per cent on last year is artificially boosted by comparisons with last February, when sales tumbled after the forced closure of the Central Line. However, tourist numbers held up, with European visitors still more numerous than those from the States.

Valentines Day helped push Beauty and related retail products, but increases were also apparent on leisure products, including new technology items. Home textiles and furniture did less well, however. David Southwell, LRC director of communication, said: "London's retailers performed better than those in the rest of the UK during February. There were good performances in Valentine's promotions and in leisure products - showing that whatever the impact of last month's interest rate, it did not affect spending on romance or home entertainment in the capital."

"Whilst the higher slightly better level of consumer confidence in London is good news, the comparison with last year is flattered by the appalling impact of the 2003 shutdown of the Central Line. Tourist numbers are holding up thanks to an increase in the number of European tourists, but the question going forward is will they be enough to offset the impact of the continuing fall in the dollar?"

Amanda Aldridge, head of retail at KPMG, said: "Although these figures look strong, it is wrong to be too upbeat about February's performance. Central London retailers suffered in February 2003 from the central line disruption and even at this growth rate they are still not enjoying sales at 2002 levels." "In the same two-year period the UK as a whole has seen growth of 3.5 per cent. One can only conclude that times remain hard for our central London stores."

16 March 2004