British retail sales volumes rose unexpectedly this month, their sharpest rate in two years, according to a recent survey . The indicators are that Christmas may not be as bad for retailers as some previously feared. It points to consumers postponing their Christmas shopping in the hope of getting better deals closer to Christmas.
The survey by the Confederation of British Industry (CBI), conducted during the first half of December, found that while 22 per cent of retailers said their year-on-year sales were down, 47 per cent said their sales were up.
"After a slow start in the run-up to Christmas, sales are really beginning to build," said John Longworth, the executive director of Asda and chairman of the CBI survey panel.
"But consumers have again left it later to hit the shops before Christmas, perhaps due to the unseasonably warm weather and the timing of Christmas Day itself."
As Christmas Day falls on a Monday shoppers have a full weekend to buy last-minute presents .
"The CBI survey is substantially better than expected, alleviating concern that Christmas is going to be a disaster for retailers," said economist Howard Archer at Global Insight.
However he warned that Christmas spending "is also far from a vintage year for retailers. Indeed, many are struggling, particularly those in the middle of the sector. The retailers that appear to be doing the best are those that cater primarily to higher income consumers, and those that are at the discount end and particularly price-competitive."
Mr Longworth warned that many retailers had been forced to cut prices quite drastically in a bid to lure customers into spending, however, clothing, booksellers and stationers are all struggling with low sales.
"With expectations for only slow growth in January though this may be given a boost by further discounting - retailers are hoping they can avoid a repeat of last spring’s falling sales volumes," Mr Longworth warned.
|
