Fresh figures from the Office for National Statistics (ONS) suggest the retail sector remains firm, with sales volumes for the three months to August having increased by 1.3 per cent, a slight acceleration on the previous quarter.

Household goods was the sector showing the swiftest acceleration, with sales picking up by 5.3 per cent, the highest growth for six years. Non-specialised stores, a group including department stores, posted a 5.1 per cent improvement, representing the highest growth for this sector since records began in 1986.

Richard Ratner, retail specialist at broker Seymour Pierce, asserts, ‘It is very clear – to us anyway – that non-food sales have been driven by discounting. In our view, this is going to impinge on the volumes later this year and throughout next year, as the consumer becomes more and more “spent up”.’

Moreover, ‘Ratty’ believes that ‘from October onwards, life will be very difficult for “big ticket” items in particular’, especially ‘if the cooler weather sees a further increase in clothing sales’.

In the week that the Office of Fair Trading accused certain supermarkets of colluding over milk prices, William Morrison unveiled almost doubled interim profits of £266.3 million (despite flat sales), while Woolworths’ half-time losses shrank somewhat to £70 million.