Making sense of the past seven days
An average of£4.8 billion a week was rung up on the tills by retailers in July, up 3.4 per cent on the same month last year.

At face value, the National Statistics data sounds good for retailers, but below the surface, the numbers make less comforting reading. In fact, the total sales volume - after adjustments for inflation - was down 0.3 per cent, representing the first monthly fall since January.

While food retailers notched up 0.4 per cent growth, non-food players suffered a 0.5 per cent decrease.

The findings rekindled fears about the outlook for the consumer economy, and some commentators fear soft trading in the autumn. But what the numbers really show is that the retail environment remains tough and there is less room than ever for error.

Last year was one of the most difficult on record for store groups, but many adapted effectively to meet the challenge. This year has not been much better, but nor has it been significantly worse.

The best retailers have already honed their strategy and tactics, and should therefore be able to maintain momentum - assuming conditions do not veer downhill.

The strong will already have planned how to play the crucial Christmas season. The weak will be crossing their fingers.

Baugur's bid for House of Fraser will be tabled imminently - if not today, then within days. The deal will spark renewed competition among department and fashion store groups, as the Icelandic investor ramps up HoF's clothing offer.

Much attention has been devoted to the potential to make more of Baugur's other fashion brands - such as Oasis and Karen Millen - in House of Fraser. But it is also likely that there will be increased focus on introducing other brands more generally - especially exclusive names.

House of Fraser styles itself as a house of brands, but in many of its shops, a lot of the labels on sale are not distinctive enough. They can be bought in other shops nearby, so there is little stand-out.

As such, there is likely to be a shift away from readily available high street labels, and perhaps the development of more proprietary brands. If successful, the strategy will make HoF's proposition much more discrete and give the stores greater cachet.

As retailers fight for every pound of shopper spend, a real USP will become all the more vital to protect the bottom line.