August sales fell 0.6 per cent on a like-for-like basis from the same month in 2010, which could impact on supply chain inventory management.
Figures published by the British Retail Consortium (BRC) and KPMG have shown that total sales were up 1.5 per cent, although between August 2009 and 2010 this had risen 2.8 per cent.
However, non-food items purchased over the internet, mail-order and phone experienced the best growth since April, having risen 12.6 per cent in the last year.
Stephen Robertson, director general of the BRC, warned that the industry is a tale of two halves, with food sales bearing up well but the rest of the sector suffering.
He warned: "The retail sector's performance for August has been essentially flat, particularly bearing in mind the increase in VAT which will be responsible for some of the growth in spending."
Earlier this month, Supply Chain Standard's Penelope Ody claimed that logistics inventory strategies have been transformed by internet retail, which has increased customers' expectations of the service they will receive.
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