December Sales Up

 

UK retail sales were up 2.5% on a like-for-like basis compared with December 2005 when sales had picked up by 2.6% which was the strongest growth of 2005.

 

The volume of retail sales in the three months of October to December was 1.4% higher than the previous three months.

 

Retail Space continued to grow as the three month trend rate for like-for-like sales had dropped from 4.3% to 4.0% for total sales.  The total sales volume between November and December saw an increase of 1.1%.  Food Sales remained strong and the colder weather helped boost the sales of clothing and footwear.

 

In the final week before Christmas, trade gathered strength however big ticket purchases were mixed with consumer remaining cautious meaning many sales were discount driven.

 

The average weekly value of sales in December was £6.7billion, 4.7% higher than December 2005.

 

 

 

Kevin Hawkins, Director General, BRC commented: “These results are almost exactly in line with our expectations – which were for like-for-like sales growth similar to last year’s out-turn. While some retailers have performed very strongly, the average experience was broadly as we expected – not a bonanza but a long way from the disaster predicted by at least one City luminary.”

 

Helen Dickinson, Head of Retail, KPMG added:  “Despite the predictions of a poor Christmas these results are very much in line with those of last year. As usual, food sales were the clear winner but there were also positive performances across most of the other sectors.   However, for many high street retailers much of the sales growth increase has been driven by heavy discounting in the run-up to Christmas.  This combined with the increasing cost pressures that many are under will mean that the gap between the winners and losers will widen further and already we have seen two retail casualties in the New Year.  We will need to look to the forthcoming retailer trading statements to get a clearer picture of who the most successful retailers have been.”  

 

source www.brc.org.uk & www.statistics.gov.uk