The UK retail market experienced a slight resurgence thanks to the slashing of prices during the January sales, while underlying growth remains steady, new figures show.
Sales grew by 0.6% in the three months November to January, increasing slightly from 0.5% growth witnessed in the three months to December, according to official figures released today.
Department stores are the latest casualty in the recent retail slump as sales fell by almost 4% among non-specialised stores in November to January period.
Meanwhile, retail sales in Central London fared slightly better climbing 3.7% higher than a year earlier. But this is well below the 6.6% annual increase in January 2007 and the fourth quarter 2007 average, says accountancy firm KPMG.
The slashing of sales prices also helped to drive sales growth in the capital. It was a difficult time for clothing and footwear retailers but sales of fashion accessories and premium beauty products were particularly buoyant.
Helen Dickinson, head of retail at KPMG said retailers shouldn’t be too disheartened by the latest figures. “[This] marks the beginning of a year where comparatives for London are strong and hence will be increasingly difficult to beat as the year progresses – we can therefore expect a trend of lower growth in the coming months as the economic conditions become more challenging.”
© Crimson Business Ltd. 2008
