–BRC: UK Jan Like-for-Like Sales -0.3% y/y; Total 2.1% y/y
–BRC: UK Nov-Jan Like-for-Like Sales 0.3% y/y; Total 2.4% y/y
LONDON, (MNI) – UK retail sales value growth turned negative in
January following the surge seen in December, but base effects played a
large part in the change, according to the British Retail Consortium.
The BRC/KPMG January data showed like-for-like sales down 0.3% on
the year following the 2.2% rise seen in December. Year-on-year sales in
December 2011 had been flattered by the fact that December 2010 had been
badly impacted by snow as well as by an extra shopping day.
Sales rebounded somewhat in January 2011 giving the January 2012
survey a high hurdle to leap. The fading out of last January’s VAT hike
will also have depressed the headline BRC numbers, which are based on
yearly value comparsions, rather than the sales volumes which are the
focus of the official retail sales numbers.
On a total basis sales rose 2.1% from January 2011 and 2.4% in
November to January from the same period of 2010-11.
The BRC said that on both measures this was the second-worst
performance since the survey started in 1995. But because of the base
effects noted above, some analysts had been expecting a worse outturn.
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.”
“Food sales grew faster than non-food but the gap was much narrower
than in December as people cut back and searched out grocery offers and
value lines. Big-ticket goods are still the weakest part of retailing,
undermined further by the comparison with last year when beating the VAT
rise and promotions linked to it helped sales.”
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.
“Both food and non-food had a slow start to the month. In the first
week of January customers were still using up stocks of food bought in
for Christmas. Non-food didn’t benefit from the catch-up shopping
effect we saw last year in the aftermath of December 2010’s snow
disruption. Both categories improved as the month developed.
National Statistics will release January’s seasonally adjusted
retail sales data on February 17.
–London newsroom: +44 20 7862 7491; email: dthomas@marketnews.com
[TOPICS: M$B$$$,MABDS$]
