BRC sees slow start to Christmas
Shoppers leaving it later
December 8 2003
UK shoppers are likely to leave their present buying until the last minute, compounding a disappointing November for retailers.
The British Retail Consortium-KPMG Sales Monitor for November showed an increase in retail sales of 0.9 per cent on a like-for-like basis, and 3.6 per cent on a total basis.
The three-month trend saw growth decrease from 1.9 per cent in October to 1.5 per cent in November for like-for-like sales, and from 4.8 per cent in October to 4.3 per cent for total sales.
A drop in sales over one of the wettest weekends in 100 years and the day of the Rugby World Cup final was evident in many sectors, while a generally mild and wet November did not help cold weather products such as winter clothes.
On line with other indicators, the BRC monitor saw trade started to pick up towards the end of the month. BRC director general Bill Moyes said: “This was the slowest November since 1998. One of the wettest weekends over the last 100 years and the Rugby World Cup played a role, but there is no escape from the fact that consumer confidence remains extremely fragile.
“However, retailers were heartened by the pick up in sales towards the end of the month. Retailers are expecting the trend towards a later seasonal rush to continue and Christmas will probably not start in earnest this year until December 19, with the majority hoping for a reasonable, but not spectacular, festive period.”
Amanda Aldridge, head of retail at KPMG said: “Similar figures to October overall hide the more positive growth rates in the final week of the month when things began to take off.
“Gift items from perfumes to DVDs and women’s accessories to mobile phones sold well but the bread and butter areas of women’s clothing and big ticket items for the home continued to be off the pace.
“The weather and the Rugby World Cup certainly had an influence but it is clear that underlying consumer confidence is fragile. A major problem seems to be how late shoppers are leaving their Christmas shopping.
“In previous years, we put this down to what day of the week Christmas fell on. However, there is now a feeling that consumers are leaving their shopping until the last minute, fully expecting that retailers will be forced into further, significant price reductions.”
Across the sectors, beers, wines and spirits benefited from the Rugby World Cup and discounting, with the early start for the the final also having a positive impact on sales of breakfast items such as bacon, sausages and eggs as many people tucked into a hearty breakfast.
Clothing had a difficult month, with products related to cold weather, such as coats, hit by the mild and wet weather. Womenswear had a tougher time than menswear and childrenswear, but women’s casual ranges performed better than formalwear.
In electricals, a growth area is flat panel plasma and LCD televisions. Digital cameras and camcorders continue to perform well, and mobile phone sales have picked up, as they become gift items as well as due to improving technology.
Department stores sales were been slower than expected for November but promotional activity has started to help, with an uplift toward the end of the month. Perfumery and fine jewellery continues to show good performance. Discounting has also helped to improve sales in homewares.
In entertainment, price deflation is limiting growth in value terms. DVD sales are still showing growth but at a slowing rate. Titles such as [i]Lord of the Rings: The Two Towers[/i] and [i]Bruce Almighty[/i] sold well over the month. Music sales have picked up, driven by album sales by artists such as REM and Dido, and the [i]Now 56[/i] compliation.
