Retail sales up: but then January-March has been an exception

We shouldn't call recovery just yet.

With the British Retail Consortium showing that retail sales increased in March by 3.7 per cent on a total basis and by 1.9 per cent on a like-for-like basis, many are now suggesting that the beleaguered retail sector is seemingly moving into recovery mode. The March numbers follow on from an upbeat February and both have helped to contribute to first quarter sales growth which was the strongest of any three-month period since December 2009.

While such momentum is clearly welcome, in order assess the true strength of the recovery the figures do need to be set in a wider context.

With the earlier timing of Easter this year, it was always inevitable that March would be a good month for sales growth. What is perhaps surprising, however, is that given this sales growth was not higher. Indeed, despite the boost of Easter, both the total and like-for-like growth rates were relatively subdued to those seen in February. So, if anything, the March numbers represent a slight deterioration in growth momentum rather than a strengthening.

The other point to which attention needs to be drawn is that the growth was fairly unevenly distributed. Food retailers, helped in large part by inflation, saw some good gains. However, the clothing sector had a torrid time as the unseasonal weather drove down demand for spring merchandise.

Then there is the unusually buoyant demand for electricals. On this front, while there is inevitably strong demand for products like tablets, some of the growth reported by retailers is likely to have come from the collapse of chains like Comet and Jessops – the sales of which have been reallocated to those left standing. Neither the British Retail Consortium nor the Office for National Statistics adjust for such failures which means, in essence, that their aggregation of growth reported by retailers becomes divorced from a proper reading of actual underlying consumer spending growth. While the impact of this methodological anomaly should not be overstated, it is worth bearing in mind when assessing the growth figures.

None of this takes away, of course, from the strong growth seen in February which will, inevitably, be pointed to as a sign that things are getting better. However, even here context remains important. The February numbers were partly flattered by a weaker January when some spending was postponed due to the winter weather. This was especially true of fashion where not only did depleted footfall on high streets dint sales, but the cold temperatures were out of kilter with the spring stock which was on the shop floor towards the end of the month. Comparatively, most of February was fairly mild which encouraged consumers out onto the high street and into buying spring fashion lines.

So, in many ways, the first three months of this year have been fairly exceptional – in terms of the weather, in the timing of Easter, and in the amount of churn with various failures in the sector. As such, this is perhaps not the best period over which to pronounce that a meaningful and sustained retail recovery has begun. Only when we get into May and June will we have a more rounded picture of retail prospects.

Retail sales increased in March. Photograph: Getty Images

 Managing Director of Conlumino

Getty
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Hillary Clinton can take down the Donald Trump bogeyman - but she's up against the real thing

Donald Trump still has time to transform. 

Eight years later than hoped, Hillary Clinton finally ascended to the stage at the Democratic National Convention and accepted the nomination for President. 

Like her cheerleaders, the Obamas, she was strongest when addressing the invisible bogeyman - her rival for President, Donald Trump. 

Clinton looked the commander in chief when she dissed The Donald's claims to expertise on terrorism. 

Now Donald Trump says, and this is a quote, "I know more about ISIS than the generals do"

No, Donald, you don't.

He thinks that he knows more than our military because he claimed our armed forces are "a disaster."

Well, I've had the privilege to work closely with our troops and our veterans for many years.

Trump boasted that he alone could fix America. "Isn't he forgetting?" she asked:

Troops on the front lines. Police officers and fire fighters who run toward danger. Doctors and nurses who care for us. Teachers who change lives. Entrepreneurs who see possibilities in every problem.

Clinton's message was clear: I'm a team player. She praised supporters of her former rival for the nomination, Bernie Sanders, and concluded her takedown of Trump's ability as a fixer by declaring: "Americans don't say: 'I alone can fix it.' We say: 'We'll fix it together.'"

Being the opposite of Trump suits Clinton. As she acknowledged in her speech, she is not a natural public performer. But her cool, policy-packed speech served as a rebuke to Trump. She is most convincing when serious, and luckily that sets her apart from her rival. 

The Trump in the room with her at the convention was a boorish caricature, a man who describes women as pigs. "There is no other Donald Trump," she said. "This is it."

Clinton and her supporters are right to focus on personality. When it comes to the nuclear button, most fair-minded people on both left and right would prefer to give the decision to a rational, experienced character over one who enjoys a good explosion. 

But the fact is, outside of the convention arena, Trump still controls the narrative on Trump.

Trump has previously stated clearly his aim to "pivot" to the centre. He has declared that he can change "to anything I want to change to".  In his own speech, Trump forewent his usual diatribe for statistics about African-American children in poverty. He talked about embracing "crying mothers", "laid-off factory workers" and making sure "all of our kids are treated equally". His wife Melania opted for a speech so mainstream it was said to be borrowed from Michelle Obama. 

His personal attacks have also narrowed. Where once his Twitter feed was spattered with references to "lying Ted Cruz" and "little Marco Rubio", now the bile is focused on one person: "crooked Hillary Clinton". Just as Clinton defines herself against a caricature of him, so Trump is defining himself against one of her. 

Trump may not be able to maintain a more moderate image - at a press conference after his speech, he lashed out at his former rival, Ted Cruz. But if he can tone down his rhetoric until November, he will no longer be the bogeyman Clinton can shine so brilliantly against.