Bad weather postpones Christmas rush
Published: 09 December, 2010
Latest BRC/KPMG data shows bad weather hit retail sales in late November
UK retail sales values for November 2010 were up 0.7 per cent on a like-for-like basis from November 2009. On a total basis, sales were up 2.8 per cent against a 4.1 per cent increase in November 2009.
Food sales growth rose a little further, though partly reflecting food inflation. Clothing and footwear also had a better month, helped by colder weather. Homewares slowed, showing a larger year-on-year decline than in October, sales were still often deal-driven, with big-ticket items affected by consumer uncertainty over job cuts and income.
Internet, mail-order and phone sales growth picked up in November after slowing in October. Sales were 17.6 per cent higher than a year ago, against a 16.9 per cent increase in November 2009.
British Retail Consortium director general Stephen Robertson said: “It’s been another tough month. Total sales growth has been weak now for eight months in a row and, given that VAT has pushed up annual inflation boosting sales values, underlying volume growth is virtually zero.
“Customers are cutting back because they’re worried about prospects for their own jobs and personal finances. Non-food sales are being hit hardest. But, if there is good news, it’s that the cuts outlined in the Government’s Spending Review have not made things worse.
“With the final run-up underway, Christmas performance is delicately poised. Overall, the extreme weather has dramatically undermined sales over the last ten days. Retailers will be hoping disruption eases so that sales lost early in the month are made up over the next couple of weeks and not lost entirely. Booming internet sales alone are unlikely to make up sales shortfalls.”
And Helen Dickinson, Head of Retail at KPMG, said: “A slow and uneventful start to Christmas trading, with the gap between food and non-food continuing to widen and non-food in negative like-for-like territory again. The star performer for non-food was footwear as the cold snap kicked in. Retailers will be hoping things pick up significantly in the final weeks, although regaining ground lost in the early run-up to Christmas is difficult. Christmas trading is expected to peak later, with online becoming a much larger part of the equation and post-Christmas sales being critical to December’s results – readiness and performance in all will be important to retailer’s fortunes. As always, there will be winners and losers – the balance between them is delicately poised and now in the hands of consumers."
