Modest UK retail growth in January
Slowdown from 2002 boom continues
February 3 2003
UK Retailers saw a modest growth in trade during the January sales, according to the latest CBI figures.
The rate of growth shows that the January sales period saw an increase from the slower sales recorded in the run up to Christmas. However, despite evidence of widespread price cutting sales are well down on the strong consumer demand seen through most of 2002.
The CBI survey shows that sales from January 2 to January 22 were better than a year ago, with 38 per cent of firms saying trade was up and 31 per cent saying it was down.
The plus seven per cent balance compares with minus three per cent in the previous survey period, ending on December 18, but is well down on the plus 37 per cent average seen over the first five months of 2002.
Stores selling footwear and leather goods reported the strongest sales growth, with durable household goods reporting strong growth and furniture and carpets showing little change compared with a year ago. Sales of groceries and clothing grew at a much slower rate than last spring, while confectioners, chemists and stores selling hardware, china and DIY products all saw a fall in sales levels compared with a year ago.
Alastair Eperon, chairman of the CBI distributive trades panel and a director of Boots, said: “The January sales will have left retailers uncertain about future prospects. The modest pick up since Christmas cannot hide the underlying slowdown in sales growth and the fact that many retailers slashed prices to lure customers into the shops. These figures come at a crucial time when everyone is looking to see if consumer spending can continue to prop up the economy.”
