Cold Weather Affects Retail Sales Figures

Written By Unknown on Selasa, 09 April 2013 | 16.01

The coldest March in 50 years saw sales of clothing and footwear freeze but it boosted demand for food and drink, according to new figures.

The British Retail Consortium (BRC) said sales grew by 1.9% in March on a like-for-like basis, weaker than February's 2.7% surge but a performance described as "encouraging" given the weather impact.

While clothing and footwear retailers endured a "dismal" month, food sales were up as families treated themselves over Easter.

BRC director general Helen Dickinson said: "Snow and the prolonged cold were not ideal, but not a disaster. They brought mixed fortunes for different categories.

"2013 has got off to an encouraging start for the market as a whole.

"Retailers are now hoping for a boost in consumer confidence and the general mood to lift performance across all, not just some sectors, as we head into the second quarter."

Across the whole of the January to March quarter, like-for-like retail sales increased 2.2%, with 1.9% non-food growth offset by 2.5% food growth.

Continued expansion by the retail sector will add to hopes the UK economy managed to eke out growth in the first quarter, thus avoiding a feared triple-dip recession.

KPMG head of retail David McCorquodale said it may be the start of a positive trend for retailers, adding clothing and shoe stores will be "desperate for a change in weather in April".

The BRC said clothing and footwear were the worst-performing non-food categories in March and the only ones where sales declined, but did not break out specific figures.

Marks & Spencer, one of the UK's biggest clothing retailers, is likely to be a major casualty of the big chill, and is expected to report falling clothing sales for the three months to the end of March on Thursday.

However, the retailer's food sales are forecast to grow by around 3%, as consumers continue to treat themselves and opt to eat in rather than dine out.

Roasts and oven chips were popular categories, the BRC said - while beer and ready meals were also big sellers, which it put down to people stocking up for the Six Nations rugby tournament.

House textiles were the best-performing category, as sales of duvets increased and Easter boosted table cloth sales.

Furniture and flooring was the second-best category, helped by a gradually improving housing market.

Online sales were up 6.6%, but that growth was much slower than the 13.9% increase recorded in March 2012.

That was the slowest online growth since August, and the BRC said it may suggest shoppers are searching out items online but completing the purchase in-store, as well as spending less time online over Easter.

:: House sales have been lifted to a three-year volume high in March, according to the Royal Institution of Chartered Surveyors.


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