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London's shops hit by the worst slump since 7/7 attacks
Kevin Widdop14.09.09
West End stores have suffered their biggest slump in sales since the aftermath of the July 2005 terror attacks.
Shop takings last month were 5.9 per cent down on a year ago, raising fears that central London faces a tough Christmas as unemployment worsens.
The swine flu scare and hotter weather than last year were two factors blamed for the end-of-summer "stay-away". The June and July sales may also have contributed as bargain-hunters failed to return in August.
The downturn is much more severe than during last autumn's financial crisis and comes after figures showing that shoppers are prioritising debt reduction over spending for the first time since the mid-Nineties.
Clothing, footwear and household goods saw the biggest sales falls, while homewares and furniture were generally strong. Food sales also held up.
The capital's like-for-like sales plunge is far worse than the 0.18 per cent average for the UK. As well as stores, London's restaurants also had a very quiet August. The British Retail Consortium said the plunge in business was partly down to a recovery in the pound's value, eroding London's appeal as Europe's bargain capital. The recession played a part in making domestic shoppers reluctant to spend.
People who shopped for light clothes in June's heatwave and warmer ones in July's downpours also contributed to the slump, as they felt they did not need to buy more later, according to the BRC.
After the July 2005 bombings, London shop sales fell 8.9 per cent from the same period the year before. Since then the West End has generally done better than the rest of the country.
Oxford Street stores told the Standard that though consumer confidence was picking up, people were window-shopping instead of buying products.
Some high street stores also claimed poor sales in household goods were a result of fewer people moving during the recession. The BRC's director general Stephen Robertson said: "These results don't suggest the recovery is under way. It is the lowest sales growth since August 2005.
"This looks like a dramatic drop but it's compared with a strong August 2008 - the third highest figure last year. The rest of the UK saw poorer growth last August, so a better result now."
Statistics out on Wednesday are expected to reveal unemployment is still rising sharply, with a jump of more than 200,000. It means unemployment still looks likely to reach threemillion next year and could go higher.
Jace Tyrrell, of the New West End Company representing re- tailers around Oxford Street, stressed the figures were London-wide, not just for the West End. He said: "At a recent meeting people said things are picking up and September is our busiest month after December.
"We expect Christmas to be a specially big one and are making a huge effort to target the US market, which is why we are in New York with Boris Johnson this week promoting London."
Reader views (18)
Companies like John Lewis are successful for one reason, they have partners who share a common goal and unlike banks there bonus is reflected in the way they perform throughout the year. Its been a tough year in retail and John Lewis as company has been meeting every demand that the market has thrown at it; from reinventing the Waitrose value range with essential Waitrose, to offering there own brand of white goods, this is all down to good buying practice and also having the support of local and worthwhile suppliers!!
- Joseph, London
Why would people bother with shopping on Oxford Street on weekends? Let's face it: a) Weekend tube travel is an absolute nightmare b) Oxford Street is a dirty traffic-choked nightmare c) There aren't many shops unique to Oxford Street apart from the ones selling absolute tat. d) Nearby Westfield in Sheps Bush is heaven in comparison e) For non High Street shops, go to Camden!
- Jethro Penzance, Bodmin
So...Boris and Co. are looking to the Yanks to bail out Oxford Street?
- Bill A, Marylebone
You were telling us last week that Sarah Brown is going to be the face of Marks and Spencer - so I'll be giving them a wide berth from now on.
- Anna Mctavish, Ealing, UK
Speaking from my own point of view, there are quite a few things I would like/need to buy. The problem is that the High Streets are filled with cheap tat, meaning anything bought is the same as chucking money down the drain.
I have the money but I am certainly not going to be wasting it. So the message is, if shopkeepers are looking to boost sales, they just have something worth buying, and we will all come out.
- Ian, Reading, England
Shops could help themselves by being more considerate to shoppers over 50.
John Lewis have many older staff, and seem to prosper better than other retailers.
Stores should have more toilets, and seating areas.
- John Jones, Westminster
No wonder McDonalds is doing so well - you can get a meal for less than a £5!
- Ethan Hunt, London, England
Possibly the recession has made people realise that they don't really need to shop for non essentials.
Much of what is purchased is just 'stuff' that is bought on impulse and rapidly loses its appeal once it's removed from its packaging at home.
- George, Cambridge UK
Reading the comments, I empathise will all the current views, at time of writing.
What I don't understand is why we are putting up with this Labour Government? Are we more frightened of the police, not that I condone direct street action. But I am running out of ideas of how to get rid of these idiots. Cameron, find it in your fighting spirit to finally put the last nail in the coffin.
What is worrying is now the internet bring many more people together, and is there an uprising brewing that will put the 80s riots to shame? I hope not, and it is you, Gordon Brown, who will be totally responsible if it gets nasty. We all want you to go now GB, right now. And in my view, every day Gordon stays, erodes Cameron's ability to have a cabinet that does what is right, and is in his control.
- Rod, Epping, UK
...But only the other week Melanie McDonagh claimed that her shopping was keeping the economy afloat...c’mon girls, go buy, you’ll keep the sales girls happy in their fashionable stores, and the sweatshops of the third world buzzing with activity…...go girl!
- Darius, London UK
High sreet shopping people wander up and down half are on the dole the rest are just looking.
- Richard Edmunds, Rayleigh Essex
London retailers have seen an increase in their rates of 5.8% this April, a figure set by the goverment.
Next April, rates are expected to increase by 10-15%,it will be interesting as which retailer will survive this increase.
- Mario Kempe, london
Anyone fancy green shoots and chips?
- Ted, London
This articles paints a more realistic picture than others which are talking up the market. For many people the banking crisis is only becoming real when they lose their jobs - something that is happening in increasing numbers.
- Jim, London
David cameron is far from being a facist.
Can we expect this sort of nonsense from the leftwingers of Britain throughout the next Conservative government...I think so.
- Andrew, Ely UK
Its all down to low interest rates. Many people like myself had £150 thousand pounds invested at 6% interest which gave me £9000 a year (before tax) which we would spend in the shops on improving our lifestyle. When the rates crashed we were getting peanuts. However house prices also crashed so we have spent our savings on buying a house. Put interest rates up, interest on savings provides spending money for some.
- Jim Allan, Lake District
It's got nothing to do with 'Swine Flu' or the 'Credit Crunch' is direcrtly due to the fact that the Jubilee Line and other have been down for months/years at weekend. No one from the East or vast part of North West London can make it into the West End at the weekend.
I'm suprised that there is not a class action against Tube Lines. Their planning is abysmal.
- Hansel, London
Now is the winter of our discontent.
Tis a pity David Camoron and his Etonian friends will use the opportunity to complete Britain's self inflicted crisis with a new smiling form of facism.
- Daniel, London
