BRC reports second worst January sales data since records began
Tuesday, 07 February 2012 09:46
The British Retail Consortium (BRC) has reported that like-for-like sales fell by 0.3 per cent in January compared to January 2011 when there had been a 2.3 per cent increase caused by the snow disruption in December 2010.
Total sales in January 2012 rose by 2.1 per cent compared to a 4.2 per cent increase last January. The BRC reports that on both measures it is the second worst January since the survey began in 1995 after January 2010.
The figures are not hugely surprising. UK households have seen disposable incomes drop over the past year as a result of high inflation and low wage increases and whilst shoppers spent well in the run up to Christmas, helped by fierce discounting and early sales from retailers, January was expected to see a slowdown in spending.
Helen Dickinson, Head of Retail, KPMG, said: "After a stronger than expected December, these latest figures are rather sobering. The return to negative like-for-like sales reflects the trend seen throughout most of 2011 and is a stark reminder of the challenges facing retailers."
As expected food sales dropped sharply in January and non-food sales also slowed especially in footwear, clothing and homeware.
Online sales continued to grow but at a much slower pace. Sales were up by 11.3 per cent on the same period last year, compared to the bigger rise in non-store sales of 18.5 per cent seen in December.
Stephen Robertson, Director General, British Retail Consortium, said: "As 2012 gets underway, it's clear people don't feel any better about the immediate future than they did 12 months ago. Customers parked their worries in December and spent, encouraged by discounts. Now, in the New Year, reality has bitten again as concerns about jobs, wages and household costs reassert themselves."
Howard Archer Chief Economist at forecasters HIS Global said: “This is a soft performance which suggests that the economy cannot expect much help from the consumer as it tries to return to growth in the first quarter of 2012 after GDP contracted by 0.2% quarter-on-quarter in the first quarter of 2012.”
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