UK retail sales values rose by a disappointing 1.8% year-on-year last month as consumer confidence failed to bounce back following the 2.6% drop in November 2008 when financial turmoil decimated the market place.
On a total basis, sales rose 4.1% against a 0.4% decline in November 2008, according to the BRC-KPMG Retail Sales Monitor November 2009.
Food sales growth slowed further, reflecting lower food price inflation.
Stephen Robertson, director general, British Retail Consortium, said:
“We would have expected much stronger growth because the comparison is with very poor results in 2008 when November was the second worst performing month of the year.
“Growth was weaker than a strong October, but it’s not as bad as it seems. A lot of this was down to the sharp fall in food inflation which continues to dampen food retailers’ sales.
“But non-food sales growth improved as the Christmas build-up began.”
Economy still in recession
Robertson added: “Consumer confidence is fragile and has taken a turn for the worse. We’re the only major economy still in recession. Uncertainty over jobs and future tax increases and government spending cuts is making customers more cautious. Retailers are hopeful of a better Christmas than last year’s dire performance, but it’s still all to play for.”
Helen Dickinson, head of retail, KPMG, said: “On the face of it, a disappointing result for November given that October showed the best like-for-like growth since 2002.
“However, once the fact that food sales growth slowed further is factored in, largely reflecting lower food price inflation, it represents a solid start to Christmas trading.”
