Retail sales have continued their upward trend, according to the latest data from the British Retail Consortium (BRC) and KPMG. In the year to February 2007, UK retail sales were up 3.3 per cent on a like-for-like basis, compared with February 2006, when sales had risen only 0.6 per cent.
The three-month trend rate of growth rose to 3.0 per cent from 2.1 per cent in January, for like-for-like sales, and to 5.0 per cent from 4.1 per cent for total sales, reflecting the growth of retail space. However, consumer confidence weakened again in February, as plans for major purchases fell back.
BRC director general Kevin Hawkins said: "A reasonably good set of results, very much in line with January's out-turn, although similarly set against flat sales last year. Clothing and big-ticket categories in general, however, remain sluggish and growth remains heavily slanted towards the grocery sector. It would appear November and January's rate increases have yet to work through to consumer spending."
And Helen Dickinson, head of retail at KPMG, commented: "February's results reflect a continuation of the trend of late December and January - not a bad set of results on the face of it but the total growth of 5.6 per cent and like-for-like growth of 3.3 per cent must be taken in the context of a weak set of figures from February 2006.
"Once again, it's the food sector which is the key driver of growth, while home accessories also had a good month. Clothing and footwear retailers continue to find generating like-for-like growth more challenging given the large increases in floor space they have taken on in the past 12 months."
Looking at individual retail sectors, BRC senior analyst Joscelyne Hynard said food and drink sales remained strong, though growth slowed a little from January's six-month high.
Overall, clothing sales were flat. Womenswear showed a slight improvement but menswear and childrenswear remained worse than a year ago. In footwear, sales growth was similar to that in January, with men's footwear continuing to lead the gains.
It was a slightly slower month for electrical and electronics, with strong competition and some aggressive discounting. Overall, it was the best month for home accessories since October but toiletries and cosmetics slowed further. Leisure goods were mixed: computer games remained very popular but music continued to face competition from downloads.
BRC/KPMG Retail sales moniter UK - February 2007
Year-on-year like-for-like (February 2007 v February 2006) UP +3.3 per cent
Year-on-year total sales (February 2007 v February 2006) UP +5.0 per cent
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