High street sales figures are the worst for three years, according to a new report.
The KPMG/British Retail Consortium Retail Sales Monitor shows that total sales are lower than a year ago for the first time since April 2005.
British Retail Consortium director general Stephen Robertson said: “For the first time in three years total retail sales fell into negative territory – further evidence of how difficult trading conditions are for retailers. Like-for-like sales have now fallen in seven of the last eight months with every sector down on a year ago apart from food and footwear.”
The research indicates that clothing and footwear sales have remained poor and discount-driven, while furniture and homewares fell further below last year’s levels, despite further discounts and promotions.
However, non-food non-store sales in October were 16.6% higher than a year ago, and figures released separately by IMRG and Capgemini suggest that a 15% increase in year on year internet sales is likely in the run-up to Christmas.
Based on the trends from the IMRG Capgemini e-Retail Sales Index, which has tracked online spending for the past seven years, it is predicted that a total of £13.16bn will be spent by British shoppers this festive season.
Capgemini head of consulting for retail in the UK, Mike Petevinos, said: “Online sales look set to ride the economic storm and continue to be the place retailers can look for growth. Getting this channel right and overcoming the delivery issues of last year will be key to looking back on the holiday season with a smile.”
© Crimson Business Ltd. 2008