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Last Updated: Tuesday, 11 October 2005, 09:11 GMT 10:11 UK
Rate cut call as sales woes go on
Shoppers
The approaching winter weather may help clothing sales
Falling demand for furniture, electrical goods and DIY has hit sales on the UK High Street, according to the British Retail Consortium (BRC).

Like-for-like sales fell 0.8% in September, better than August and July, but the seventh monthly fall this year.

Many retailers were forced to offer discounts to drive sales.

BRC director general Kevin Hawkins said the figures meant the case for another interest rate cut from the Bank of England was "now as pressing as ever".

"While the underlying trend does not appear to be getting any worse, it is still too soon to say that things are improving," he added.

"Next month's figures will give us a better read on what is happening on the High Street."

Winter warmers?

In the past week, a number of retailers - including JD Sports and Austin Reed - have complained of tough trading conditions.

Marks & Spencer - which on Tuesday announced a rise in second-quarter sales - said trading was expected to remain difficult in the run-up to the Christmas season.

However, while underlying sales fell, total sales rose 3.1% last month, the BRC said.

And sales of food and drink showed an increase, helped by sales of winter products such as soups, meat, and porridge.

Keeping with the seasonal theme, Helen Dickinson, head of retail at KPMG, observed: "Clothing retailers will be hoping the cold winter weather sets in soon."




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