November sees worst sales growth for six months
Published: 6 December 2011
Britain's high streets have seen the worst sales growth for six months, with sales values down 1.6% like-for-like last month compared with November last year.
According to the latest figures from the BRC-KPMG Retail Sales Monitor, total sales were up just 0.7%, against a 2.8% increase in November 2010. Both measures saw the weakest sales performance since May 2011.
While food growth was little changed from October, non-food sales fell further below their year-earlier level, with sales largely promotion-led. Big-ticket homewares and furniture were the worst hit by continued consumer caution.
KPMG head of retail Helen Dickinson said: "The latest figures prove once more that the health of UK retailing is deteriorating. Christmas is a crucial trading period for the UK retail sector but this year many retailers will be nervous and unsure as to how the season will pan out. Cash-strapped consumers continue to be reticent and last week's gloomy economic forecast by the Chancellor won't help to boost confidence levels.
"Any sales are hard won, with high discount and promotion levels. Retailers' performance is suffering because of weak top-line growth and declining margins, making the backdrop even more challenging. December will require some tough decisions for a number of retailers as they struggle to plot a path in such challenging conditions."
Non-food, non-store sales growth also fell back last month after picking up in October. Sales were up by 8.6% year-on-year, the weakest growth since March.