Member Article

Retailers suffer "a month of two halves"

High street sales were flat in the month of January, according to a survey from business advisory firm, BDO.

Retail sales fell by 0.4% year-on-year across the entire month despite a 14.3% surge in the first week, which is the biggest weekly rise recorded in three years.

BDO said the figures closely corresponded to low consumer confidence and strategic bargain shopping.

A 1.2% sales drop was recorded in the fashion sector across January, while in the first seven days there was a 17.1% rise.

Heavy snowfall across the UK was also blamed for a poor turnout on Britain’s high streets as consumers opted to shop online instead, which was demonstrated by the 41.5% rise in non-store activity.

Non-fashion sales grew by 2.4%, while homeware sales decreased by 4% in comparison with January 2012.

BDO’s Don Williams, head of retail and wholesale, said January had been a “month of two halves” for retailers.

He said: “People spent their Christmas money and vouchers carefully at the beginning of the month and then, when faced with diminishing sale stock, terrible weather and bleak economic forecasts, battened down the hatches.

“After a reasonable December and a strong start to January, retailers are likely to be disappointed the month wasn’t slightly more positive.

“With February a notoriously difficulty month for the sector, retailers will need to continue to negotiate the difficult consumer environment, but those that offer shoppers what they want and how they want it, backed up by exceptional service, will find that people are still willing to part with their money.”

This was posted in Bdaily's Members' News section by Miranda Dobson .