Olympics exacerbates August sales slump

Last month's retail spending was down 0.4 per cent, according to British Retail Consortium

Figures show that August's retail figures were among the lowest since November last year, as the Olympics engrossed the nation's shoppers.

According to British Retail Consortium (BRC) figures released today, spending was down 0.4 per cent compared with August 2011, when sales were down 0.6 per cent on August 2010.

The hope is that the slump signals that shoppers merely postponed their purchases until the Christmas run-up, said Stephen Robertson, director general at the BRC.

"It is clear people were absorbed by the magnificent Olympics and had little interest in shopping, especially for major items," he added.

"Usually reliable online sales suffered... Some retailers told us online activity was particularly thin in the evenings. If people were not watching television, they were more likely to be following the sport on PCs and mobile devices than shopping."

Online sales saw growth of just 4.8 per cent in August, the lowest since data collection began in October 2008.

Helen Dickinson, head of retail at KPMG, claimed the situation could have been worse for retailers.

"The Olympics brought a much-needed boost to consumer confidence, [but] the country was ‘otherwise engaged' in August," she said.

"August is a traditionally weak month for sales and it is really the next three months that will have a critical impact on retailers' profitability. The challenge remains to accurately forecast outcomes in such a volatile trading environment."