According to research conducted by the British Retail Consortium (BRC), many shoppers are still keeping a tight leash on their spending, even with retail commercial properties offering early sales.
The research by the BRC found that retail sales figures grew by only 0.7 per cent during November, which is the slowest growth since May. At this time of the year, many people would expect the figure to be much higher.
Speaking of the figures, Stephen Robertson, Director General at the BRC, expressed: “Consumers are not quite in the Christmas mindset yet, although stores are working to generate much-needed sales with high levels of festive discounting.”
When compared to the same time last year, sales figures in this year’s retail commercial properties decreased by 1.6 per cent. However, retailers are optimistic that people are just waiting for December to do their Christmas shopping, as Mr Robertson put across: “Retailers hope that customers who’ve managed their finances carefully in recent months will still treat themselves and their families in December, unhampered by the severe weather which disrupted shopping 12 months ago.”
Although people are not doing their shopping in retail commercial properties, people are still buying online, but figures are still weak. Online sales in October were up by 8.6 per cent compared to the same time last year, but these figures are still below figures we saw in March of this year.
Speaking of the worrying online and physical sales figures, Mr Robertson stated: “There’s a worrying lack of cheer in these figures. The weakest increase in sales for six months suggests consumers are keeping a tight rein on their spending, despite Christmas being so near.”
So why are sales figures so low?
The BRC believe the mild weather in November has not helped sales this year, as last year many parts of the country experienced the ‘big freeze’, which resulted in many people being stuck at home, due to adverse snow. Also, the BRC feel that the Government’s Autumn Statement detailing a bleak economic outlook has not helped peoples’ views on spending money.
“This November’s mild weather contrasted with much lower temperatures last year, hitting sales of winter clothing and footwear particularly hard. The Autumn Statement’s bleak assessment of the UK recovery is the latest in a sequence of poor economic news which includes falling sales, rising unemployment and stubbornly high inflation,” Mr Robertson said.
Helen Dickinson, Head of Retail at KPMG who specialise in offering advice, audit and tax and services, also speaks of the miserable Christmas sales figures: “The latest figures prove once more that the health of UK retailing is deteriorating. Christmas is a crucial trading period for the UK retail sector but this year many retailers will be nervous and unsure as to how the season will pan out. Cash-strapped consumers continue to be reticent and last week’s gloomy economic forecast by the Chancellor won’t help to boost confidence levels.”
