Christmas arriving late

The British Retail Consortium has just reported that UK retail sales values fell 2.6% on a like-for-like basis, from November 2007, when they had risen 1.2%. Total sales were lower than a year ago, as in October. This was the first time since the survey began in January 1995 that sales declined for two consecutive months.

The BRC stipulated that the retail Christmas season could have just been delayed by consumers postponing their festive purchases following the VAT announcement, waiting for the change to be implemented.

"Brown goods remained down on a year ago, with TVs holding up better than other sectors though driven largely by promotions and aggressive discounting. Household appliances, both large and small, struggled and were often bought for replacement purposes rather than as an additional extra or upgrade. Some beauty electricals showed an uplift as Christmas gift purchases," reported the BRC.