Retail sales 'fall still further'
9 Dec 08
Total UK retail sales have fallen in consecutive months for the first time in at least 13 years, a closely-watched survey has said. Sales in November were down 0.4 per cent from a year earlier, said the latest British Retail Consortium-KPMG retail survey
Following a 0.1 per cent decline in October, it was the first drop in overall sales for two months in a row since the survey was first released in January 2005.
The report said retailers were now facing a "nerve-wracking Christmas".
On a like-for-like basis - which pulls out the impact of new store openings and closures - the survey found that sales in November were down 2.6 per cent. This was the sixth month in a row to see like-for-like sales decline.
Total sales were up 2 per cent in November when the figures are measured on a 12-month moving average.
The British Retail Consortium said food and drink was the only sector to see sales rise last month, lifted by continuing heavy discounting by the supermarkets.
It added that it hoped the cut in VAT from 17.5 per cent to 15 per cent would now help to lift sales.
"There is little doubt that Christmas will arrive late for many retailers, leaving them with a very nerve-wracking couple of weeks to come," said Helen Dickinson, head of retail at KPMG.
For retailers, Christmas is a key trading period and for some firms it can represent more than three quarters of annual revenues.
As High Street firms such as Woolworths enter administration, there are fears that other firms could see a similar fate.
Stephen Robertson, the BRC's director-general said: "The numbers speak for themselves - these are clearly tough times."
But he added that it was hoped the "extraordinary" number of discounts and promotions would encourage some shoppers to spend more.
To read the BRC-KPMG Retail Sales Monitor November 2008, click here