Worst December since 2008 for UK retailers

Retailers in the UK have experienced their worst Christmas since the recession struck, with discounted figures continuing to have an impact.

December
sales declined by 0.4%, compared to the previous year, on
like-for-like sales, adding to the woes already felt throughout the
year. According to the British Retail Consortium (BRC), this is the
worst December for UK retailers since 2008, when sales crashed by
3.3% after the collapse of the Lehman Brothers.

It
was however noted by the BRC that the sales for food increased during
December. This is the first increase since April. End-of-season
sales accounted for a bit of support in the non-food section.

There
have been mixed trading reports within the industry for this
important month. M&S have reported a discouraging Christmas
period, with John Lewis and Next reporting strong sales figures.
Morrisons and Debenhams are due to provide investors with an update
on Tuesday.

According
to the BRC, the overall December performance was positive. Helen
Dickinson, the director general of the consortium, stated that
targeted discount has proved to be successful for retailers in the UK
as prices were reduced sufficiently to attract customers.

The
retail sales monitor of BRC-KPMG indicated a 1% increase in total
sales which have not been adjusted to take account of the effect of
floor space changes as stores open and shut down. This figure is
also the weakest reported for December, since 2008.

According
to KPMG’s head of retail, David McCorquodale, there was a quiet
period after the Black Friday flash sales as consumers sat back and
waited for the next wave of discounts and this is what has made sales
performance difficult.