February Retail News

Slowdown in Sales growth

Following a relatively weak January, the underlying rate of growth in retail sales slowed further growing by only 0.5% for the three months of December 2005 to February 2006.  This growth is down by 0.9% for the same period in 2005.

The ‘Volume of Sales’ in food stores grew by 0.2% whilst non-food sales grew by 0.4%.   Non-store retailing showed the highest growth at 3.4%, the sectors largest growth since July 2004 and reflects a continued strong growth by specialist Internet retailers.

The sales volume for household goods grew 2.5% but clothing sales saw a drop of 0.8%, which is the lowest drop since February 2005.

Retail sales growth (per cent)

(Source National Statistics Online)

Monthly figures show that the total sales volume increased by 0.5% between January and February.  This follows a 1.6% decrease between the months of December and January.  The unadjusted value of retail sales was 2.1% higher for the same period of 2005.

Average weekly sales in February were £4.4 billion, which is 0.8% higher than February 2005.

The British Retail Consortium has announced that retail sales during February grew by 0.6% on a like for like comparison to February 2005.   This is the forth consecutive growth for retail sales something which has not been seen since October 2004.  However what must be considered is that February 2005 was a weak period and saw a drop in sales so although these figures are welcomed they are not a call for celebration.

The three-month trend of growth weakened in February to 0.9% from 1.1% in January for like-for-like sales however they did rise from 3.6% to 4.3% for total sales.  It has been a slow start for spring and summer ranges with footfall down and the cold weather making consumers stay in the winter mindset.  Clothing and footwear sales did pick up towards the end of the month but sales were overall difficult.

Concerns over personal finances due to increasing rates and energy prices has made consumer confidence weak and restricted the amount of large house related purchases.

Source British Retail Consortium