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:

Recommended Articles

Comments

UK Dec retail sales disappointing
Financial Planning

Could CFOs do more to boost shareholder value?

Could CFOs do more to boost shareholder value?

Working capital improvements start to pay off, but more could be donemore ..


Balfour rejects Carillion's "improved" £2bn merger bid

Balfour board says the offer does not address its two main concernsmore ..

Persimmon posts 57% rise in pretax profits

The FTSE100 housebuilder credits Help to Buy with encouraging growthmore ..

Inflation rate eases to 1.6% thanks to generous summer sales

Price drops in clothing and food biggest contributor to fall in inflationmore ..

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unansweredmore ..

Budget: What business wants

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

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
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *