We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

UK Dec retail sales disappointing


Volumes down 0.1% m/m; Moody’s forecasts further pain

Article comments

UK retail sales for December fell 0.1 percent in month-over-month terms, the Office for National Statistics (ONS) said on Friday.

Non-food retail, especially sales of household goods, fell by 3 percent; the highest monthly fall on record since January 2010, the ONS said. Food sales also fell 0.3 percent on the month, adding to the overall weakness in retail sales data for December.

On an annualised basis, sales rose by a mere 0.3 percent over December 2011. The figure was the lowest since April, the ONS said. Lending credence to current market conjecture about changing consumer habits, the ONS said online and other types of ‘non-store retail’ sales grew nearly 12 percent year-over-year in December.

Commenting on the news, Philip Shaw, UK economist at Investec, said, "The high street seems to have stalled again over the past few months. Recovery prospects will depend strongly on a pick-up in consumer activity over the first few months of 2013."

Meanwhile, in a report published on Friday, ratings agency Moody’s forecast low to flat retail sales growth in the UK, France and Germany and contracting sales in Southern Europe in 2013.

Specifically on the UK retail market, Yasmina Serghini-Douvin, senior analyst in Moody's corporate finance group, said, "While easing commodity prices should help the earnings of clothes retailers like NEXT and Marks and Spencer in 2013, weak consumer spending will continue to weigh on the sector."

Online spending was again the bright spot of the holiday season, supporting retailers' sales growth across various categories, although growing from a generally low base, she added.

Share:

Comments

UK Dec retail sales disappointing
Financial Planning

Budget: What business wants

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..


Unilever reports Q1 sales growth of 3.6%

However, consumer product giant’s turnover hit by 8.9% negative currency impactmore ..

Spirent posts 16% rise in Q1 revenue

Networks testing firm benefiting from 4G rollout in Chinamore ..

Sports Direct posts 10.3% rise in quarterly sales

However, row over pay and investments overshadow sterling performancemore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Digital streamlining of travel and expense claims [Part II]

Concur shows CFOs how to make life easier when the auditors come knockingmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Do you have what it takes to become a non-executive?

Do you have what it takes to become a non-executive?

The benefits of board service for CFOs more ..

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

Advertisement

* *