RETAILING

EUROPE: Weather and interest rate rises impact UK retailers.

The BRC-KPMG Retail Sales Monitor for July 2007 shows that UK retail sales rose 1.2% on a like-for-like basis compared with July 2006 when sales rose 3.4%. The current rate of growth was half that experienced in the second quarter of 2007 and the slowest since November 2006.

In contrast to July 2006 which is reported as the hottest on record this July was one of the wettest. Comparisons are also impacted by the occurrence of the World Cup. Sales of food, clothing, footwear, DIY and gardening equipment have suffered whilst department stores and out-of-town shopping centres have benefited from being shelters from the frequent storms.