BRC:January retail figures boosted by one-off factors
Reacting to the figures published last week by the Office for National Statistics (ONS) the BRC said the 6.4 per cent annual increase in the total value of sales is strong but distorted by factors unique to January.
British Retail Consortium Director General Stephen Robertson said: “Superficially, these are strong figures but they don’t indicate any permanent revival in customers’ willingness to spend.
“Though a 6.4 per cent increase in the total value of sales is greater than the 4.2 per cent recorded by our own Retail Sales Monitor for the same period, it is telling the same story.
“Growth this January was driven by a relatively short but strong burst of non-food buying early in the month. Some of that was spending held over from December when severe weather stopped people getting out. Shoppers also took their final opportunity to beat the VAT rise in the first few days of January. Then, even after the VAT rise came in, it did minimal damage to sales because the effect on prices was largely lost among a mass of discounts and promotions.
“But these are short-term influences. Our own figures show spending tailed off sharply as the month developed. Slumping consumer confidence indicates concerns about jobs and finances are now reasserting themselves. February’s results will be a better indicator of how things really are.”
