February 2007 Retail News

 

Retail Sales in the UK were up 3.3% on a like for like basis compared to February 06 when sales had risen by only 0.6%.  The continued growth of retail space was again reflected in sales figures as the three month trend of growth rose to 3.0% from 2.1% in January for like for like sales and to 5.0% from 4.1% for total sales.

 

The volume of retail sales in the three months to February was 1.1% higher than in the previous three months, showing that the volume of sales remained robust and close to the long run average.

 

 

Food sales remained strong, though growth slowed a little form January’s six month high.  Growth in sales volume for food stores was 0.5% for the last three months.  Clothing and footwear sales were largely flat, furniture remained down on a year ago and house textiles, toiletries and cosmetics slowed. 

 

Analysis of monthly figures show that the total sales volume increased by 1.4% between January and February, the largest monthly increase since January 2005.  Although the average weekly value of sales was up by 4.7% to £4.6billion, consumer confidence was still weak, as plans for major purchases fell back.

 

The retail traffic index showed that although more money was being spent than in the previous 12 months, footfall was down 1.3% in February and down by 9.3% on January.

 

Kevin Hawkins, Director General, BRC said “These are 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 that the November and January rate increases have yet to work through to consumer spending.”

 

Helen Dickinson, Head of Retail, KPMG added “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% and like-for-like growth of 3.3% 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, whilst home accessories also had a good month. Clothing and footwear retailers continue to find generating like-for-like growth much more challenging given the large increases in floor space they have taken on in the last twelve months.”

Retail sales growth (per cent)

Sector Performance February 2007

Food and drink

 

Growth slowed a little form January’s six month high but sales levels remained strong.  Fresh fruit and vegetables continued to benefit from increased national awareness and impacted sales figures of bakery goods and confectionary.

Clothing

Sales figures were marginally better than January small year-on-year decline but overall were flat.  The continued mild weather hit heavy knits and warm accessories, though the snowy cold days did bring an upturn in sales levels.  New season spring ranges saw sales levels start well.  For the fourth month in a row, childrenswear saw sales levels drop.

   Footwear

Sales growth was similar to that in Januray, with men’s footwear continuing to lead the gains but as in January, growth in women’s, men’s and children’s was against sharp falls in the same month last year.  The mild weather drove a good start to new season ranges but necessitated heavy markdowns for winter stock, notably boots.

 

        Electrical and Electronic

It was a slightly slower month for many, with strong completion and some aggressive discounting.  Flat screen LCD TV’s remained big sellers, but growth slipped back against last year’s strong comparatives.  Home theatres remained very strong, but DVD players and recorders, VCRs and Internet audio continued weaker than a year ago.

    Department Stores

Sales growth varied across stores and was difficult for some.  Valentines did however boost the sales levels of accessories and beauty.

 

       DIY/ Gardening

Showroom Kitchen and bathroom sales slowed after January’s promotion driven boost, but still showed gains for some.  The milder weather benefited sales for gardening care & spring bulbs.

           Homewares

Overall it was another good month for home accessories, showing the best growth since October.  However, sales varied widely across stores and sectors.  Heavy discounts were needed however to clear old stock.

  Furniture & Carpets

Sales were only below slight below last February’s levels but the comparatives were weaker than for January’s sharp fall

      Chemist & Beauty

Toiletries and cosmetics slowed further, to show their weakest growth since the year-on-year decline in January 2006.

        Leisure Goods

Home entertainments were mixed with some good growth due to promotions.  Computer games remained very popular.

           Mail Order

Sales were generally flat.  Clothing and footwear were slow but home and leisure showed some gains, albeit promotion led: large TVs benefited thus.