27 May 2008, 14:27 PM
  • With sales being 2.7% higher last month than in April 2007, the capital is doing much better than the rest of the UK, despite the credit crunch.

In the UK as a whole, April sales fell by 1.5% compared to the same period last year. In London, however, retail footfall improved slightly and the strength of the Euro brought European shoppers to town.

Stephen Robertson, director general of the British Retail Consortium, says, “London retailers continued to weather the tough economic climate better than the rest of the UK. Despite colder and wetter weather, shopper numbers were up slightly. Retailers in the capital will work hard to continue delivering value, especially as household incomes get squeezed.”

Helen Dickinson, head of retail at KPMG, adds, “This is a confirmation of the trend seen last month as central London’s retailers managed to squeeze out marginal like-for-like sales growth in contrast to the rest of the UK where sales fell. The ongoing challenge to the sector continues, with a tough economic backdrop highlighting the fragile level of consumer confidence.”

Although positive, the London sales figures for April are significantly lower than they were in 2007 and are still hampered by American and Japanese tourists being discouraged from spending by a weak dollar and yen.