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February sales worst since May 2009, says BRC

Published: 8 March 2011
The latest figures from the BRC-KPMG Retail Sales Monitor showed total UK retail sales rose by 1.1% last month, against a 4.5% increase for the same month last year.
February sales worst since May 2009, says BRC
This is the poorest growth since May 2009, excepting the negative figures last April caused by the timing of Easter. Sales fell 0.4% on a like-for-like basis, compared with February 2010 when sales rose 2.2%.

Food sales picked up after a weaker January, but non-food slowed sharply, with clothing, footware and homewares hit by renewed consumer uncertainty about jobs and incomes. Big-ticket purchases suffered most and were often promotion-led, said the report.

Better weather than last February's snowy conditions helped outdoor DIY and gardening, but underlying trade was still hit by consumer caution, particularly for larger projects.

Home accessories fell sharply, after a clearance uplift, while home textiles slowed significantly. A focus on essentials meant practical kitchen and cooking products were often preferred to discretionary and decorative extras. Spring cleaning promotions helped floorcare, hardware and cleaning products.

In furniture and floorcoverings, sales dropped back to well below their year-earlier level after clearance discounts and pre-VAT rise buying gave good gains in January. Fitted kitchens, bathrooms and bedrooms were hit by renewed consumer caution.

British Retail Consortium director general Stephen Robertson said: "After the big boost to January's figures from one-off factors, including a strong final burst of pre-VAT rise spending, February's figures are a return to a more realistic picture of how things are for customers and retailers. Food sales held up. Sales of non-food goods, particularly more expensive items such as furniture and electricals, suffered."

He added: "Even online, the growth in sales of non-food items slowed to an 18-month low. Customers are cautious and cutting back in a big way on non-essential spending."

Non-food non-store sales growth fell further last month, with sales 10.4% higher than a year ago, the smallest gain since August 2009.

Last month, the BRC urged the Government to ease retailer costs in its submission to the Chancellor ahead of the March Budget.

Comments

Published prior to March 2014
By Maralyn
This Goverment should have reduce vat not increased it to 20%, they really need to look at
ways of increasing consumer confidence, in their
efforts to reduce this country's debt they will increase the number of people on the dole and will
dig an even bigger hole for us all, they really need to look at the big picture!!!

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