Wednesday 7 March 2012

Retail sales remain weak, says BRC | News | EN for Business

Retail sales remained weak in February, as falling inflation and improved consumer confidence failed to translate into increased spending on the high street.

Figures from the British Retail Consortium (BRC) and accountant KPMG show sales values fell by 0.3 per cent on a like-for-like basis compared with February 2011.

Food sales had picked up thanks to people stocking up for cold weather. However, non-food sales continued to decline, despite continued promotions and discounts. Indeed, sales of clothing, footwear and homewares were worse than both January and December, particularly for larger purchases.

Meanwhile, the growth in non-food, non-store sales, which include internet, phone and mail orders, slowed again after a sharp rise around Christmas. Sales were up 9.9 per cent year-on-year, compared with an annual increase of 11.3 per cent in January and 18.5 per cent in December.

Commenting on the figures, BRC director-general Stephen Robertson said, "The reality of weak sales shows that a convincing revival remains illusory.

"Falling inflation has eased the squeeze on household finances and halted the slide in consumer confidence but that's at risk from fuel price rises and Budget uncertainty. Unemployment is expected to rise further causing increased nervousness about job security, which is keeping confidence fragile. Any sense of improving optimism is not yet translating into more spending.

"Total sales growth is still below inflation, so overall customers are actually buying less than a year ago, while discounts are eating into margins. Food picked up but non-food sales deteriorated with goods affected by the slow housing market among those particularly struggling.

"In this climate of continued caution, the Chancellor must use the Budget to hold back business costs, which will support jobs, growth and the much-needed consumer turnaround."

By Andy Jowett

Source: http://www.enforbusiness.com/news/retail-sales-remain-weak-says-brc-20128087

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