Comment on the Office of National Statistics (ONS) Retail Sales figures for May 2009

Richard Lowe, Head of Retail and Wholesale, Barclays Commercial Bank said:

"Retail sales are in a holding pattern.

With a slight fall in May and growth in the past three months compared to a year earlier continuing to slow, expectations of a positive increase this month have not been met.

However, looking at the numbers over the past nine months evidence suggests that retail sales numbers are moving sideways.

"Sterling's continued recovery against the US dollar and the euro sheds a welcome light on the sector for all those who have budgeted to operate beneath the current exchange levels.

There are encouraging signs that this will keep having a positive effect later into the year and will ease many concerns of operating under over-cautious expectations.

"A re-invigorated supply chain has not meant that retailers are losing track of the need to follow lessons learned in recent months and stock levels remain well controlled.

The need for aggressive marketing and wide-scale reductions called for in post-Christmas sales will not be requisite in the summer sale season now upon us as retailers mark a return to business as usual.

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