24 September 2001, 13:20  UK retail trading picks up; some report return to pre-Sept 11 business - BRC

LONDON (AFX) - Retail trading in the UK has picked up markedly over the last few days, and in some cases retailers are indicating that business has returned to the levels seen before the terrorist attacks on the US on Sept 11, according to the British Retail Consortium. David Southwell, the organisation's media relations officer, said anecdotal evidence suggests there was a marked decline in retail sales until Tuesday last week, followed by a pick up over the last weekend. The BRC, which represents 90 pct of the UK retailing and reports its next monthly figures on Oct 8, said the immediate effects of the terrorist attacks affected businesses differently. Some are thought to be reporting sales declines of more than 30 pct since Sept 11, while others reporting much lower falls. Southwell wouldn't comment on specific percentage declines, and said this month's figures would be difficult given that in the equivalent period last year, the UK was brought to a virtual standstill by the fuel crisis. Those industries thought to have held onto sales include the supermarkets. However, some leisure activities, like going to the cinema, are said to have fared less well, and may be doing even worse than the same period last year. Southwell said the immediate effects of the attacks are likely to be "temporary", and are usually worked out of the system within 14 days. The long-term effects of the attacks and probable war are a different matter, said Southwell. Earlier, the US brokerage Goldman Sachs reduced its 2001 European general retail sector earnings growth forecast to 6 pct from the previous 11 pct, and European GDP growth estimates have been cut o just 1 pct from 2.7 pct over the next three quarters.

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