UK like-for-like sales negative
BRC/KPMG sales monitor dips in March
April 14 2003
UK like-for-like retail sales declined by 0.6 per cent in March, the first negative growth recorded in three years.
The monthly British Retail Consortium-KPMG sales monitor recorded growth of 2.1 per cent in total with the three-month growth trend declining from 2.5 per cent in February to 1.6 per cent in March, with like-for-like sales down from 5.1 per cent to 4.3 per cent.
The figures are a strong indication that UK retailer’s fears about a slump in consumer confidence are justified, although the late timing of Easter this makes direct year-on-year comparisons difficult.
While sales Central London continues to see a downturn in trade as a result of fewer visitors, in general the impact of the Iraq war was limited, with increasing consumer uncertainty only felt over the first few days of conflict.
The strongest sales during March were generated by Mother’s Day promotions, while graden and DIY retailer also did well due to the spell of good weather.
Bill Moyes, BRC director general said: “It’s difficult to determine an absolute figure this month, due to the difference in timing of Easter. However, it’s clear that the trend is moving downwards at a worrying rate. Retail is vital to the economy and if the trend in high street sales is not reversed, the Chancellor has no hope of achieving his optimistic growth forecasts. Brown needs to stimulate demand by pushing for America to reflate and persuading the British consumer that their financial future is underpinned by a sound domestic economy.”
Amanda Aldridge, head of retail at KPMG, said: “A discouraging set of figures, even allowing for the timing of Easter, show that the numerous negative factors affecting the UK consumer are finally biting. Better performing areas include women’s clothing and footwear, buoyed by the month’s good weather and household accessories and textiles which are bucking the trend. Contrast this with bigger ticket items for the home which are at the poorer performing end of the spectrum. It remains to be seen whether people will be spending money on their homes at Easter in the usual way to reverse the downward trend in growth.”
Food and drink sales were stable overall, with chocolates selling well in the run-up to Mothers’ Day, and Home Office advice regarding the threat of terrorism boosting of bottled water dramatically. Sales of cosmetics, fragrances and perfumery also benefited from Mothers’ Day.
Sales of children’s clothing and footwear were down, affected by the timing of Easter, while the electricals sector has also an overall slowdown. However, DVD players and widescreen televisions continue to be popular, with the launch of DVDs such as xXx and Lilo & Stitch helping sales.
