UK: January retail sales helped by pent-up demand
January sales were driven by a short but strong shopping burst
UK consumer spending continues to be undermined by economic worries, even though pent-up demand after December's snow, pre-VAT rise purchases and clearance bargains boosted UK retail sales in January, according to figures released today (8 February).
Like-for-like UK retail sales values were up 2.3% on last January, the British Retail Consortium (BRC) said, with total sales 4.2% higher than a year ago.
However, while non-food sales rose at the start of the month, sales have since fallen back, hit by consumer caution.
Non-food non-store (internet, mail-order and phone) sales growth also fell back in January after picking up in November and December. Sales were 12.3% higher than a year ago.
"On the surface, this is the best sales growth since last March, but that's not the whole story," explained Stephen Robertson, BRC director general.
"Comparisons are with a feeble, snow-hit performance a year ago. Growth this January was driven by a relatively short but strong burst of non-food buying early in the month.
"Later in the month sales of non-food goods slowed, particularly for bigger items, as the reality of worries about jobs and personal finances returned to customers' minds."
Robertson warned: "Turning round consumer confidence is central to turning round the economy. A range of pressures is bearing down on customers. As it considers the Budget, the Government must not add any more."
- Expensive US dollar hitting H&M sourcing costs
- Enthusiasm for tech in outdoor apparel on rise
- 2015: Welcome to the new fashion consumer
- Apparel industry gains traction says IAF chief
- Performance apparel set for continued growth
- Kanati pulls production out of Pakistan
- Sears Holdings cuts 115 corporate jobs
- H&M Q4 mixed but plans 400 new stores
- UK clothing sales see strongest rise in two years
- Companies continue to call for US trade commitment
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Outdoor performance apparel: peaks, valleys, and green fields
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Li & Fung Limited (494) - Financial and Strategic SWOT Analysis Review
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead