UK retail sales rose 1.2% on a like-for-like basis, compared with November 2006, when sales were up only 0.5%. November’s growth is just above October’s 1.0% but well below the average for both 2006 and 2007 to date. The three-month trend rate of growth fell to 1.8% from 2.0% in October for like-for-like sales, and to 3.8% from 3.9% for total sales, reflecting the continuing growth of retail space.
Kevin Hawkins, Director General, BRC said This result was not unexpected, given that November is traditionally a quiet month for sales and that many consumers are feeling apprehensive about next year. Much of this modest growth, however, came in the fourth week of the month thanks to an upsurge in discounting activity. This points yet again to a very price-conscious Christmas for many consumers.
Helen Dickinson, Head of Retail, KPMG added “As we move into the critical Christmas trading period, the 3.1% total and 1.2% like-for-like increase in sales will not be the result that many retailers were hoping for. November has historically been a poor month for trading, and this month doesn’t seem to have changed that trend. Womenswear has had a particularly disappointing month, but there were some positive signs for most sectors in the last week of November.