8th January 2008
Shops see 'worst Christmas for three years'
Retail sales rose over the festive season by the lowest amount in three years, according to the British Retail Consortium (BRC).
Like-for-like sales, which exclude new shops or those that cease trading, rose by just 0.3% in December 2007, compared to December 2006 when sales were up by 2.5%. Growth in the month was the weakest since sales last dropped, in March 2006.
"Sales did grow in December but, as the worst performance since March 2006, growth can only be described as weak," said Helen Dickinson, head of retail at KPMG, which administers the BRC's monthly retail sales monitor.
"This sets the scene for the new year ahead and like-for-like sales look set to move into negative territory as they did in 2005."
BRC director-general Kevin Hawkins said: "This result is somewhat worse than we expected and points to a very challenging first half for 2008."
Referring to the Bank of England's next interest rate decision, due on 10 January, he added: "Given that the full effects of the Bank's previous increases in interest rates have yet to be felt by many households, retailers and manufacturers alike need a rate cut now – preferably a full half-point."
Like-for-like sales, which exclude new shops or those that cease trading, rose by just 0.3% in December 2007, compared to December 2006 when sales were up by 2.5%. Growth in the month was the weakest since sales last dropped, in March 2006.
"Sales did grow in December but, as the worst performance since March 2006, growth can only be described as weak," said Helen Dickinson, head of retail at KPMG, which administers the BRC's monthly retail sales monitor.
"This sets the scene for the new year ahead and like-for-like sales look set to move into negative territory as they did in 2005."
BRC director-general Kevin Hawkins said: "This result is somewhat worse than we expected and points to a very challenging first half for 2008."
Referring to the Bank of England's next interest rate decision, due on 10 January, he added: "Given that the full effects of the Bank's previous increases in interest rates have yet to be felt by many households, retailers and manufacturers alike need a rate cut now – preferably a full half-point."
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