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Press Release

SLOW SALES SIGNAL PRICE-CONSCIOUS CHRISTMAS

4th December 2007

NOVEMBER
Like-for-Like
Total
% change on year ago
1.2%
3.1%
SEPTEMBER-NOVEMBER
Like-for-Like
Total
% change on year ago
1.8%
3.8%

Total Market

  • UK retail sales rose 1.2% on a like-for-like basis, compared with November 2006, when sales were up only 0.5%. November’s growth is just above October’s 1.0% but well below the average for both 2006 and 2007 to date.
  • The three-month trend rate of growth fell to 1.8% from 2.0% in October for like-for-like sales, and to 3.8% from 3.9% for total sales, reflecting the continuing growth of retail space.

Kevin Hawkins, Director General, British Retail Consortium

“This result was not unexpected, given that November is traditionally a quiet month for sales and that many consumers are feeling apprehensive about next year. Much of this modest growth, however, came in the fourth week of the month thanks to an upsurge in discounting activity. This points yet again to a very price-conscious Christmas for many consumers.”

Helen Dickinson, Head of Retail, KPMG

"As we move into the critical Christmas trading period, the 3.1% total and 1.2% like-for-like increase in sales will not be the result that many retailers were hoping for. November has historically been a poor month for trading, and this month doesn't seem to have changed that trend. Womenswear has had a particularly disappointing month, but there were some positive signs for most sectors in the last week of November. December trading will be crucial to results, with many retailers pinning their hopes on increased consumer spending this Christmas."

Food & Drink sector performance – by Joanne Denney-Finch, Chief Executive, IGD

“Over the last four weeks, food retailers have moved ahead with their preparations for Christmas supported by investment in TV advertising campaigns. Sales have responded strongly, with initial data suggesting that the seasonal boost in grocery sales may already be underway.

“Retailers will be working hard to maintain this momentum and Christmas promotions will be of key strategic importance. Already we have seen some strong offers but the decisive competitive factor will be the ability of retailers to execute these in stores over the next three weeks. Exciting times lie ahead.”

Non - Food

  • Clothing and footwear sales fell further below year-earlier levels. Furniture and homewares were flat, with any gains driven largely by discounts. Health and beauty slowed but remained up on a year ago.
  • Consumer confidence has fallen further, hit by interest rate rises, the slowing housing market and financial uncertainties. Consumers are particularly cautious about making major purchases.


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British Retail Consortium

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