| Retail Sales fare better in January |
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| Tuesday, 12 February 2008 | |
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UK retail sales bounced back in January after stores had their worst Christmas in three years, the British Retail Consortium (BRC) has
said. Analysts said the sales rise was also due to discounting in some non-food sectors, which hit profit margins.
Consumer confidence had fallen, the BRC said, with shoppers remaining cautious. "While the 'doom-mongers' may be temporarily silenced by this month's results, it's certainly too early to draw any conclusions about how the rest of the year will pan out," said Helen Dickinson, head of retail at consultancy KPMG, which compiled the survey. January sales absorbed demand carried over from a poor December," she added. Analysts said the survey could dampen chances of a series interest rate cuts as it shows consumer spending, the main engine of UK growth, holding firm. “Following three months of weak year-on-year growth, this appears to be significantly better but the figures don’t mean consumer confidence is reviving yet. The headline results conceal a mixed picture," stated Stephen Robertson, Director General of the British Retail Consortium. Despite the January sales, clothing sales were down on a year ago. Robertson added: “Many retailers will be glad the boost from Valentine’s Day is followed rapidly this year by Mothering Sunday and an early Easter." |
