Jonathan De Mello, Head of Retail Consultancy at CBRE responds to the ONS monthly retail sales announcement this morning.
“A feel-good factor is pervading UK retail right now with the fastest retail sales growth in over two years reported this month, fuelled by a barbecue summer which has consequently boosted sales of food, alcohol and fashion. Mark Carney’s carefully measured words on interest rates should help to ensure this positive trend continues, as ongoing low interest rates can only help consumer spending, particularly in the crucial run up to Christmas.
“The UK’s retail recovery is one of a number of positive signs we are seeing in global markets right now. Both the French and German markets are now well out of recession and the US market is going from strength to strength with some good like for like growth from key market barometers, such as Wal Mart and Kohl’s crucial ‘back to school’ period.
“All signs are that UK retail is bouncing back and whilst structural change will continue, given the rise of omni-channel and the ‘ecosystem’ approach retailers are consequently adopting in expanding in the UK and beyond, it seems that – at least for now – the feel good factor is here to stay.”