UK retail sales values are down by 0.4 per cent on a like-for-like basis from August 2011, when they were down 0.6 per cent on the preceding year, research finds.

UK retail sales values are down by 0.4 per cent on a like-for-like basis from August 2011, when they were down 0.6 per cent on the preceding year, research finds.

On a total basis, sales are up 1.6 per cent, against a 1.5 per cent rise in August 2011, according to a study by the British Retail Consortium (BRC).

Excluding the Easter anomaly, these figures are both the lowest since November 2011, driven by particularly weak non-food sales as the feelgood factor from the Olympics failed to inspire spending.

There was a mild boost to food sales in the form of party food and drink, but the net effect of the Games was minimal as lower footfall in London was offset by a better performance in the rest of the country.

The most noticeable impact from the Olympics has been felt online with growth of just 4.8 per cent in August, the lowest since the Monitor started collecting data on this in October 2008.

BRC director general Stephen Robertson says that there is no evidence of any Olympic boost to retail sales overall, with August seeing the worst sales growth this year.

'Hot weather and the Olympics did help sales of party food and drink but that was more than offset by a really weak performance for non-food goods, he says.

'It's clear people were absorbed by the magnificent Olympics and had little interest in shopping, especially for major items. Usually-reliable online sales suffered, putting in the worst sales growth since we started the measure four years ago.'

Robertson adds that some retailers told the BRC that online activity was particularly thin in the evenings. 'If people weren't watching television they were more likely to be following the sport on PCs and mobile devices than shopping.

'As summer gives way to the all-important Christmas run-up, retailers will be hoping sales that didn't happen in August have been postponed and not lost entirely.'

Helen Dickinson, head of retail at accountant KPMG says, '[The figures] could have been much worse. August is traditionally a weak month for sales and it's really the next three months that will have a critical impact on retailers' profitability. The challenge remains to accurately forecast outcomes in such a volatile trading environment.'

See also: Easter boosts retail sales