Retail sales in Central London in May were 6.3% higher than a year earlier, on a like-for-like basis, a good gain on top of the 14.1% year-on-year increase in May 2006. Retail footfall fell further below year-earlier levels, according to SPSL. People continue to cut back on shopping trips, but spend more on each trip when they do shop.

Visitor numbers slowed a little. Western Europeans remained the main overseas shoppers, together with Russians and other Eastern Europeans, but North Americans were less numerous than a year ago. Clothing and footwear were hit by the poor weather but fashion accessories and beauty products held up well. Home and leisure was mixed, with some big-ticket items affected by consumer caution, but smaller homewares improving after a poor April.

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