Retailers across the UK see confidence rising

SUMMER discounts, the World Cup and warm weather led to July's retail sales rising at the fastest rate in three years, with confidence reaching a six-year high.

Grocers and shops selling clothing and footwear posted the strongest growth, according to yesterday's CBI distributive trades survey.

Some 51 per cent of retailers said their sales exceeded July 2009's level, with 11 per cent reporting lower turnover. The resulting reading of +33 beat expectations of +11 and was the highest since April 2007.

A balance of +45 expect higher sales in August - the most positive figure since June 2004.

David Lonsdale, CBI Scotland's assistant director, said: "The upcoming rise in value added tax, which is due to take effect in early January, may spur shoppers into some advance purchases in order to avoid paying the extra tax.

"This could provide Scottish retailers with a further albeit temporary fillip later this year."

Figures published last week by the Office for National Statistics (ONS) showed that retail sales volumes increased by 0.7 per cent in June.

Household goods outlets and department stores were the biggest winners according to the ONS, with shoppers buying televisions for the World Cup.

But mixed messages continue to emerge from the sector, with the Scottish Retail Consortium last week warning that fears over public-sector cuts meant shoppers north of the Border had curbed their spending.