Sales figures not as bleak as expected

A 1% year-on-year fall highlights further evidence nationally that the effects of the terrorist threat aren't being widely felt. Natasha Burton at FootFall said "The -6.9% drop week on week is disappointing after the strong showing last week which heralded the start of the school holidays. However, as people begin their holiday trips and change their daily routines whilst on holiday, there will naturally be a reduction in shopping trips.

"The department store sector was hit harder than the national picture week-on-week recording a fall of -12.8 per cent. This cannot detract from the 6.7 per cent rise year on year, and the fact that the sector has been outperforming 2004 for three consecutive weeks as their discounts and offerings continue to pull shoppers in store.

"Department stores see their attractiveness grow annually during the last two weeks in July as prospective holiday-makers use them as 'one stop' holiday shops. This traditionally results in a large fall in the first week of August when the shoppers are away. Department stores will see a late August peak when consumers stock up on back to school items,"