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Evening Standard
Evening Standard
Business
Simon English

Shoppers spending more but department stores suffer

Estimated net migration to the UK from the EU in the year ending September 2018 fell to a level last seen in 2009 (Picture: PA)

The strife in department stores was laid bare on Thursday with the emergence of official figures showing they are being shunned by shoppers.

While overall retail sales were much better than expected, the department stores struggled.

UK retail sales were up 1.1% in March from the previous month.

That’s the third month running to see an increase, as record employment numbers, low inflation and rising wages boost consumer confidence.

Year-on-year sales are up a striking 6.7%, though sales in March 2018 were hit by the “Beast from the East”, which brought freezing temperatures to the UK.

While businesses are putting off investment due to Brexit fears, consumers appear to be spending freely.

Many high street stores are struggling but internet sales — up 4.2% on the month and 23% from a year ago — are more than making up the difference.

Warm weather helped the shopping trade, as did Mother’s Day which saw sales rise of flowers and chocolate.

John Lewis saw profits slump 99% last year amid what it called “challenging times”.

Debenhams, hit by rising rents and huge debts, has been taken over by its lenders. It employs 25,000 people.

ONS head of retail sales Rhian Murphy said: “Retail sales increased in the three months to March, following sustained growth throughout the first three months of the year. Over the longer term, department stores were the only shop type to see their sales shrink.”

Jeremy Thomson-Cook at WorldFirst said: “These figures are surprising. There is hope that the delay in a potential no-deal Brexit until October will allow the stronger retail sentiment to remain undiminished.”

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