BRC Announce Fall In Sales

Shop sales fell for the first time in almost a year last month, the British Retail Consortium said yesterday, in data which appeared to back forecasts of an unhappy Christmas from retailers such as Dixons. The BRC said shop sales slid 0.2% in November from a year earlier on a like-for-like basis, the first fall since December last year. Total sales, which include extra floor space that shops have added, were up 2.4% but that was the lowest since last December.

"The figures provide further proof that rate rises and fears over the housing market, pensions and the economy have created a subdued, cautious mood amongst consumers," said the BRC's director general, Kevin Hawkins. The survey showed that the decline was widespread, with only food and women's clothing and footwear retaining any underlying strength. Its relationship to official retail sales data, however, has not been strong in recent months.

Mr Hawkins said retailers were used to shoppers leaving their Christmas spending to the last minute. "Talk of panic sales is premature and retailers will now wait to see if the mood improves and they can catch up lost ground during December." A separate survey from the Nationwide showed consumer confidence appeared to be holding up well in spite of the interest rate rises this year.