This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7965278.stm

The article has changed 8 times. There is an RSS feed of changes available.

Version 6 Version 7
UK retail sales stall in February UK retail sales stall in February
(9 minutes later)
Retail sales growth almost stalled in February as consumers cut back on spending, official figures show.Retail sales growth almost stalled in February as consumers cut back on spending, official figures show.
Sales growth slowed to 0.4% last month when compared with February 2008, a sharp slowdown in the rate of growth after a 3.6% rise in January.Sales growth slowed to 0.4% last month when compared with February 2008, a sharp slowdown in the rate of growth after a 3.6% rise in January.
This was the smallest annual increase since September 1995, according to the Office for National Statistics (ONS).This was the smallest annual increase since September 1995, according to the Office for National Statistics (ONS).
The figures suggest that retailers are still attracting shoppers, but through discounting that has hit profits.The figures suggest that retailers are still attracting shoppers, but through discounting that has hit profits.
Analysts had expected retail sales growth of 2.5% last month.Analysts had expected retail sales growth of 2.5% last month.
SnowfallSnowfall
The heavy snowfall in February, as well the worsening economic climate, hit companies already hurt by the deterioration in shopping last year.The heavy snowfall in February, as well the worsening economic climate, hit companies already hurt by the deterioration in shopping last year.
[February's figure] ends the recent puzzlingly strong run of figures Vicky Redwood, Capital Economics Fewer shoppers hit Next profits Kingfisher hit by China weakness [February's figure] ends the recent puzzlingly strong run of figures Vicky Redwood, Capital Economics Fewer shoppers hit Next profits Kingfisher hit by China weakness
Retail sales have so far held up much better than many analysts had expected as other parts of the economy have declined.Retail sales have so far held up much better than many analysts had expected as other parts of the economy have declined.
Nevertheless, the past year has seen a big change in the spending patterns of UK households, in response to the growing recession and the credit crunch, the ONS said separately, in its latest edition of its publication Economic & Labour Market Review.
Struggling retailersStruggling retailers
On a monthly basis, retail sales fell 1.9% from January, more than the decline of 0.4% that had been predicted, with textile, clothing and footwear store sales down by 3.7%.On a monthly basis, retail sales fell 1.9% from January, more than the decline of 0.4% that had been predicted, with textile, clothing and footwear store sales down by 3.7%.
Other figures released this week showed that although the amount of money consumers are spending is still rising, some retailers are struggling to make profits:Other figures released this week showed that although the amount of money consumers are spending is still rising, some retailers are struggling to make profits:
• On Thursday, home improvements retailer Kingfisher said retail profit in the UK declined by £24m to £129m as it closed its subsidiary Trade Depot• On Thursday, home improvements retailer Kingfisher said retail profit in the UK declined by £24m to £129m as it closed its subsidiary Trade Depot
• Next said revenue and profits declined and that it expected sales to be negative for 2009• Next said revenue and profits declined and that it expected sales to be negative for 2009
• Swedish retailer H&M, which has stores on many UK High Streets, reported a 12.6% fall in quarterly profit, blaming currency swings and lower sales• Swedish retailer H&M, which has stores on many UK High Streets, reported a 12.6% fall in quarterly profit, blaming currency swings and lower sales
• On Wednesday, the owner of the Zara fashion chain said its profits barely changed during 2008.• On Wednesday, the owner of the Zara fashion chain said its profits barely changed during 2008.
SupermarketsSupermarkets
"February's sharp drop in the official measure of retail sales ends the recent puzzlingly strong run of figures and supports the message from the more timely surveys that High Street spending growth is back on a downward trend," said Vicky Redwood, an economist at Capital Economics."February's sharp drop in the official measure of retail sales ends the recent puzzlingly strong run of figures and supports the message from the more timely surveys that High Street spending growth is back on a downward trend," said Vicky Redwood, an economist at Capital Economics.
While High Street retailers are reporting weaker profits and cutting back expansion, supermarkets have announced better-than-expected results. While High Street retailers are reporting weaker profits and cutting back expansion, supermarkets have announced better-than-expected results. The value of food sales has held up strongly as most food is still regarded as an essential item, the ONS said in the Economic & Labour Market Review.
BBC News is tracking where jobs have been created and lost around the UK BBC UK jobs tracker BBC News is tracking where jobs have been created and lost around the UK BBC UK jobs tracker
Supermarket chain Sainsbury's on Wednesday reported that same-store sales increased in the first three months of the year, boosted by its range of cheaper "basics" products.Supermarket chain Sainsbury's on Wednesday reported that same-store sales increased in the first three months of the year, boosted by its range of cheaper "basics" products.
That followed rival Morrisons, which reported a 7% increase in annual pre-tax profits, and Waitrose, which saw sales touch £4bn for the first time.That followed rival Morrisons, which reported a 7% increase in annual pre-tax profits, and Waitrose, which saw sales touch £4bn for the first time.
The ONS said in Thursday's release that sales at food stores were 4.9% higher for the three months to February than in the same period last year.The ONS said in Thursday's release that sales at food stores were 4.9% higher for the three months to February than in the same period last year.
Changed spending habitsChanged spending habits
Separately, in its latest edition of its publication Economic & Labour Market Review, the ONS pointed out that the past year had seen a big change in the spending patterns of UK households, in response to the growing recession and the credit crunch. The sudden downturn in the housing market, and restrictions on bank lending, have produced a big fall in the value of household goods being sold, the ONS said.
The value of food sales had held up strongly as most food was still regarded as an essential item.
But the sudden downturn in the housing market, and restrictions on bank lending, had produced a big fall in the value of household goods being sold.
House moves often trigger spending decisions on items such as carpets, curtains, furniture and other fixtures and fittings.House moves often trigger spending decisions on items such as carpets, curtains, furniture and other fixtures and fittings.
And people have been turning to the internet to order items online, in the search for bargains, the ONS said.And people have been turning to the internet to order items online, in the search for bargains, the ONS said.
Meanwhile, prices in non-food shops and stores had fallen for almost two years now, so people have been able to spend less than before, it said. Meanwhile, prices in non-food shops and stores have fallen for almost two years now, so people have been able to spend less than before, it said.