Shopping Centre
November figures are true to form
Published:  14 December, 2007
Page 35 

According to the latest retail sales monitor from the British Retail Consortium and KPMG, UK retail sales rose 1.2 per cent on a like-for-like basis in November, compared with the previous November when sales were up only 0.5 per cent. November's growth is just above October's 1.0 per cent but well below the average for both 2006 and 2007 to date.

The three-month trend rate of growth fell to 1.8 per cent from 2.0 per cent in October for like-for-like sales, and to 3.8 per cent from 3.9 per cent for total sales, reflecting the continuing growth of retail space.

BRC director general Kevin Hawkins said: "This result was not unexpected, given that November is traditionally a quiet month for sales and that many consumers are feeling apprehensive about next year."

And Helen Dickinson, head of retail at KPMG, added: "November has historically been a poor month for trading, and this month doesn't seem to have changed that trend. Womenswear has had a particularly disappointing month, but there were some positive signs for most sectors in the last week. December trading will be crucial to results, with many retailers pinning their hopes on increased consumer spending this Christmas."

Looking at the food & drink sector, IGD chief executive Joanne Denney-Finch said: "Over the last four weeks, food retailers have moved ahead with their preparations for Christmas supported by investment in TV advertising campaigns. Sales have responded strongly, with initial data suggesting that the seasonal boost in grocery sales may already be underway.

"Already we've seen some strong offers but the decisive competitive factor will be the ability of retailers to execute these in stores. Exciting times lie ahead."

And in the non-food sectors KPMG noted that clothing and footwear sales fell further. Furniture and homewares were flat, and health and beauty slowed.

Consumer confidence has fallen further, hit by interest rate rises, the slowing housing market and financial uncertainties. Consumers are particularly cautious about making major purchases.


BRC/KPMG retail sales monitor - December

Month-on-month (November 2007 v October 2007) UP 1.0%

Year-on-year (November 2007 v November 2006) UP 3.1%



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