Showing posts with label Retail. Show all posts
Showing posts with label Retail. Show all posts

Tuesday, 8 December 2009

Shoppers' confidence 'fragile' as sales dip

Shoppers
'Disappointing' sales figures for November have shown shoppers' confidence is still fragile.

According to the British Retail Consortium (BRC) like-for-like retail sales rose 1.8 per cent from November 2008, when sales had dropped 2.6 per cent due to the global financial crisis.

Today's figures followed October's uplift, which had seen a 3.8 per cent gain. The BRC said much of the reason for the fall last month had been lower food price inflation, adding that clothing and footwear sales had also been weaker.

Stephen Robertson, director general of the BRC, said: 'We would have expected much stronger growth because the comparison is with very poor results in 2008 when November was the second worst performing month of the year.

'Growth was weaker than a strong October, but it's not as bad as it seems. A lot of this was down to the sharp fall in food inflation which continues to dampen food retailers' sales.

'Consumer confidence is fragile and has taken a turn for the worse. We're the only major economy still in recession. Uncertainty over jobs and future tax increases and government spending cuts is making customers more cautious. Retailers are hopeful of a better Christmas than last year's dire performance, but it's still all to play for.'

The BRC figures showed toys continued to sell well in November, while gaming was boosted by Call of Duty: Modern Warfare 2, and in music, Susan Boyle's debut album broke the record for first-week sales.

In clothing overall sales continued to be weak, with children's clothes driving sales. The year-on-year fall in menswear was the worst since May 2008 and, as for womenswear, any gains were often discount-driven, the BRC said.

Helen Dickinson, head of retail at KPMG, who put the retail sales figures together alongside the BRC, said: 'On the face of it, a disappointing result for November given that October showed the best like-for-like growth since 2002.

'Although regaining ground lost in the early run up to Christmas is difficult, if not impossible, many retailers will be quietly confident that their performance will not be anywhere near as bad as some may have expected six months ago.'ADNFCR-708-ID-19500248-ADNFCR

Wednesday, 4 November 2009

FTSE 100 jumps on strong retailer sales

FTSE 100 closes 1.4 per cent higher at 5,107.89 on upbeat news from UK high street
The FTSE 100 closed 1.4 per cent higher at 5,107.89 on upbeat news from the UK high street and a strong start on Wall Street.

Following an unsettled session yesterday, the index got off to a good start with news the service sector performed better-than-expected in October.

Encouraging sales figures from Marks & Spencer and an optimistic statement from insurer Aviva helped maintain the momentum, while builders Taylor Wimpey and Redrow also boosted hope for the housing market with upbeat outlooks.

A strong start to trading on Wall Street ahead of a Federal Reserve announcement also helped boost afternoon trading on the FTSE 100.

The blue-chip index ended the day comfortably over the 5,000 mark, led by miner Fresnillo, up by 9.19 per cent on stronger silver prices.

Positive news from the high street also lifted Thomas Cook, up by 7.41 per cent.

Banking stocks were lower following yesterday's bailout news, with Lloyds Banking down by 1.19 per cent and Royal Bank of Scotland down by 0.5 per cent.

Cadbury was also trading 1.42 per cent down, after bidder Kraft reported disappointing results and put a potential takeover in jeopardy.ADNFCR-708-ID-19443722-ADNFCR