Christmas 'to come late' for retailers

Consumer spending has fallen for two consecutive months in the run-up to Christmas - the first time it has done so, according to the BRC-KPMG Retail Sales Monitor.

The survey, which is carried out by the British Retail Consortium and professional services provider KPMG, recorded the first month-on-month fall compared to the previous year's sales since it was established in January 1995.

November recorded a 0.4% drop versus November 2007's figures, following the 0.1% drop in October versus the same time last year.

However, like-for-like sales - which ignore any store openings or closures in the last year - were down by 2.6% in November versus the same period in 2007.

Like-for-like sales have now fallen in eight of the last nine months.

Food and drink was the only sector to show a rise in comparison to 2007, while discounting failed to lift clothing, footwear, furniture and big-ticket homewares to last year's levels.

The report suggested that retailers were facing a "nerve-wracking" few weeks to Christmas, with November's figures possibly affected as consumers put-off purchases to take advantage of the VAT cut in early December.

Stephen Robertson, BRC director-general, said: "The numbers speak for themselves - these are clearly tough times.

"Retailers will be hoping that customers have been putting off Christmas shopping, not cancelling it."

IMAGE John Stillwell/PA Wire