Evidence is growing that retailers had a bad Christmas and New Year, while analysts are predicting the worst sales season for decades.
Although it is still too early to report conclusively on Christmas trading, straw polls suggest sales were down heavily on last year. Retail research group FootFall says sales on December 27,the first full day of the 'January' sales, were down 5.9% on the same day in 2003.
While some analysts believe the shortfall is due in part to the fact that the twenty-seventh fell on a Saturday in 2003 and a Bank Holiday Monday in 2004, data published today appears to show a wider slowdown.
However, recently published data shows that consumers are in a relatively buoyant mood. Market research group GfK Martin Hamblin says confidence picked up slightly last month. Its index climbed to minus three from minus four in November, with the sub-index covering people's opinion of the general economic environment improving.
Reza Chady, director at GfK, said: "Consumers have shown increased optimism about the general economic situation this month for both past and future.
"However, this optimism is not transferred to their personal financial situation. The climate for major purchases has shown signs of increasing - whether this is a seasonal effect or a long term change remains to be seen."
