January Retail News

January saw retail sales increasing by only 0.2% for like-for-like basis for the same period of 2005.  Although Christmas was stronger than many had predicted, the January sales marked a return to similar trends seen during 2005.  January 2006 saw the weakest start to a year since the British Retail Consortium began surveying in 1995.

January saw a growth in the three-month trend rate from 0.2% in December to 1.1% for like-for-like sales which will have been a relief to many however total sales were down for 4.1% to 3.6%.

Sales during January have mainly been discount driven with Home and Leisure sales being particularly difficult.  Food sales slowed down after their Christmas upturn and clothing and footwear sales also dropped back.

Shoppers are remaining value conscious and although they are keen to take advantage of clearance promotions and discounts, they are reluctant to commit to larger purchases

Kevin Hawkins, Director General, BRC comments said  "After the pre-Christmas upturn, we are now back to the reality of a tough, discount driven retail market.  The message from every sector of our industry is the same.  The squeeze on consumer spending continues unabated.  The economy badly needs a cut in interest rates".

Source BRC-KPMG Retail Sales Monitor – January 2006