You are here

UK retail sales growth accelerates in January: BRC

Tuesday, February 10, 2015 - 08:19

3383426987.jpg
British retail spending accelerated last month as shoppers splashed out more than usual in the January sales, while food sales rose for the second month in a row, an industry survey showed on Tuesday.

[LONDON] British retail spending accelerated last month as shoppers splashed out more than usual in the January sales, while food sales rose for the second month in a row, an industry survey showed on Tuesday.

The British Retail Consortium said retail spending was 1.6 per cent higher this January than a year ago, following a 1.0 per cent year-on-year rise in December.

The survey was the latest to suggest Britain's consumers are becoming more willing to spend after a recent end to years of falling real incomes, and that they will continue to be the driving force behind the country's economy - the main battleground for May 7's national election. "The clothing, toys and household appliances sectors particularly benefited from this spending spree, notching up year-on-year growth against tough comparables from the year before," said David McCorquodale, at survey sponsor KPMG.

But he added that retailers have been caught in a "difficult cycle", with demand driven almost solely by discounts. "This promotion-led environment risks becoming the new normal - retailers are struggling to persuade consumers to break the habit and go back to the traditional sales cycle." Retail spending on the BRC's like-for-like measure - which excludes new stores and more closely reflects how stores report sales to shareholders - rose 0.2 per cent on the year, compared with a 0.4 per cent decline in December.

sentifi.com

Market voices on:

Economists polled by Reuters had forecast faster growth of 0.5 per cent.

REUTERS

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom