Christmas sales building slowly
UK retailers looking for December uplift
December 3 2003
UK retailers are seeing a slow build up to Christmas, with sales growth in the first half of November below expectations.
However, stores expect trade to pick up in December, according to the CBI’s quarterly survey.
Retailers said sales were modestly below average for the time of year but expectations remain strong, suggesting December’s sales volumes should be higher than a year ago.
In all, 41 per cent reported sales were up in November, while 22 per cent said they were down. The balance of plus 19 per cent compares with plus 35 per cent in October, when sales growth was at an 18-month high, and falls well short of expectations of plus 37 per cent.
The underlying trend continues to pick-up, with the November balance is at the highest level since June 2002. Retailers are also betting on good Christmas period by continuing to order more goods from suppliers.
Grocers reporting the strongest growth, followed by booksellers and stationers. Footwear and leather stores recorded the greatest decline and clothing purchases were only slightly up on a year ago.
Ian McCafferty, CBI chief economic adviser, said: “Retail sales grew at a reasonably healthy rate in November, but clearly disappointed expectations. However, optimism remains high and December’s sales are expected to be much higher than a year ago.
“Even so, consumers may be very vulnerable to rising interest rates and it is vital that the Bank of England sticks to the cautious line on rate rises it has taken so far.”
