THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Retail like-for-likes fall 0.3% in December

BRC-KPMG retail sales monitor for December 2010 says that snow made a tough Christmas worse.

GENERAL MERCHANDISE

Retail like-for-likes fall 0.3% in December

BRC-KPMG retail sales monitor for December 2010 says that snow made a tough Christmas worse.

UK retail sales values were down 0.3% on a like-for-like basis from December 2009, when sales had risen 4.2%. On a total basis, sales were up 1.5% against a 6.0% increase in December 2009.

Snow disrupted sales patterns and meant lost trade for some. Food sales growth slowed a little. Non-food had a much tougher time. In particular, larger purchases were hit by fears about jobs and incomes.

Non-food non-store (internet, mail-order and phone) sales growth edged up only marginally in December after picking up in November. Sales were 18.0% higher than a year ago, against a 26.5% increase in December 2009.

Stephen Robertson, Director General, British Retail Consortium, said,“The unusually early winter weather made a difficult Christmas worse. With mounting concerns about the impact of spending cuts and the wider economy, sales growth has been weak since last summer. December was always likely to be similarly unspectacular but the snow and ice dealt an extra blow to business for many retailers.

"Catch-up shopping gave a big boost to the week just before Christmas and the post-Christmas clearances were strong for non-food retailing but neither was enough to replace every sale lost earlier in the month. Generally, people did spend on food for the big day. They had a celebration, but a combination of weather and worries led them to cut back on presents. With the big day over, there was a rush to the shops for discounted sales items but customers hit the brakes on buying food and drink.

"This is no return to the dire picture two years ago, but the message for the Chancellor is: concentrate on delivering growth and leave any new burdens out of your March Budget."

Helen Dickinson, Head of Retail, KPMG, said,"December is the biggest month of the year with volumes 20-30 per cent higher than other month. Very disappointingly, without the impact of the arctic weather the results would have been noticeably better. The gap between food and non-food grew as the non-food sectors saw a decline in the value of sales against Christmas of 2009 whereas food sales growth continued at close to the existing run rate. The contrast between pre- and post- Christmas was stark for both food and non-food retailers. Food sales dropped off after a good pre-Christmas week. In contrast, non-food improved as shoppers headed out in the final week to take advantage of clearance bargains in advance of the VAT rise, so releasing a level of pent-up demand. However, this was not enough to make good the pre-Christmas shortfall and was at lower margin due to the commencement of the sales. 2011 is set to be a challenging year."

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process