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Christmas sales beat expectations | Christmas sales beat expectations |
(about 5 hours later) | |
Retailers enjoyed their best December growth for eight years, the British Retail Consortium (BRC) has said. | Retailers enjoyed their best December growth for eight years, the British Retail Consortium (BRC) has said. |
Like-for-like sales rose 4.2% by value during the month after a last-minute buying spree by shoppers, and a rebound in consumer confidence. | Like-for-like sales rose 4.2% by value during the month after a last-minute buying spree by shoppers, and a rebound in consumer confidence. |
BRC director general Stephen Robertson said the sales were "stronger figures than we dared hope for". | BRC director general Stephen Robertson said the sales were "stronger figures than we dared hope for". |
The improvement comes as a range of retailers have reported buoyant trading over the Christmas period. | The improvement comes as a range of retailers have reported buoyant trading over the Christmas period. |
The BRC also said the figures were helped by comparison with the "terrible figures" of December 2008. | The BRC also said the figures were helped by comparison with the "terrible figures" of December 2008. |
Snow and freezing weather also boosted demand for winter warmers and sent clothing sales growth to its highest for more than five-and-a-half-years. | Snow and freezing weather also boosted demand for winter warmers and sent clothing sales growth to its highest for more than five-and-a-half-years. |
There is a risk that a healthy December may be only a temporary respite on the painful road to recovery BRC director general Stephen Robertson UK 'close to leaving recession' | |
The bad weather also encouraged shoppers to buy online, and sites which began their sales on Christmas Eve and Christmas Day also did well. | The bad weather also encouraged shoppers to buy online, and sites which began their sales on Christmas Eve and Christmas Day also did well. |
Food retailers also reported strong sales of premium lines and luxuries. | Food retailers also reported strong sales of premium lines and luxuries. |
The performance in the electricals sector was mixed, with shoppers seeking deals in a competitive market. | The performance in the electricals sector was mixed, with shoppers seeking deals in a competitive market. |
Howard Archer, economist at IHS Global Insight, said retail spending in December would "reinforce belief that the economy exited recession with significant expansion in the fourth quarter of 2009". | Howard Archer, economist at IHS Global Insight, said retail spending in December would "reinforce belief that the economy exited recession with significant expansion in the fourth quarter of 2009". |
The BRC report comes after a string of upbeat Christmas trading reports from retailers. | The BRC report comes after a string of upbeat Christmas trading reports from retailers. |
Poundland saw a 4.4% rise in like-for-like sales, which strip out the impact of new store openings, over the five weeks to 3 January. | Poundland saw a 4.4% rise in like-for-like sales, which strip out the impact of new store openings, over the five weeks to 3 January. |
TRADING UPDATES AT A GLANCE M&S - like-for-like sales up 0.8% in three months to 26 DecemberJohn Lewis - revenues of £500.8m in five weeks to 2 January. Like-for-like sales up 12.7%Next - like-for-like sales up 3.2% in 22 weeks to 24 DecemberAsda - said it had a 'solid' ChristmasMajestic Wine - like-for-like sales up 11.7% in nine weeks to 4 JanuaryOcado - like-for-like sales up 30% in four weeks to 26 DecemberShop Direct - sales up 6.3% in six weeks to 1 JanuarySainsbury's - like-for-like sales up 3.7%, excluding fuel, in the 13 weeks to 2 January. Retailers face 'very tough' 2010 | |
The Co-operative Group reported a 4.8% increase in sales, excluding fuel, in the 12-week period to 2 January. | The Co-operative Group reported a 4.8% increase in sales, excluding fuel, in the 12-week period to 2 January. |
Department store group House of Fraser said it had enjoyed its "biggest-ever" Christmas week. | Department store group House of Fraser said it had enjoyed its "biggest-ever" Christmas week. |
The company said like-for-like sales rose 7.1% in the eight weeks to 2 January. | The company said like-for-like sales rose 7.1% in the eight weeks to 2 January. |
The latest updates from retailers follow upbeat trading reports from John Lewis, Next and Sainsbury's last week. | The latest updates from retailers follow upbeat trading reports from John Lewis, Next and Sainsbury's last week. |
Tesco, Debenhams and HMV are also due to update the market this week. | Tesco, Debenhams and HMV are also due to update the market this week. |
However, the British Retail Consortium has warned that retailers face a tough 2010 as uncertainty about the economy continues. | However, the British Retail Consortium has warned that retailers face a tough 2010 as uncertainty about the economy continues. |
"After a surprisingly muted November, this is the best total sales growth for a December since 2005 and goes well beyond just making up for the sales fall the sector suffered a year ago," said the BRC's Mr Robertson. | "After a surprisingly muted November, this is the best total sales growth for a December since 2005 and goes well beyond just making up for the sales fall the sector suffered a year ago," said the BRC's Mr Robertson. |
He added: "But, with customers now reacquainting themselves with concerns about jobs and tax rises there is a risk that a healthy December may be only a temporary respite on the painful road to recovery." | He added: "But, with customers now reacquainting themselves with concerns about jobs and tax rises there is a risk that a healthy December may be only a temporary respite on the painful road to recovery." |
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