Retailers want Budget to "revive" economy after flat sales
Retail sales up 1.5 per cent in February, British Retail Consortium says
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Tuesday, 11, Mar 2008 12:01
Retailers have called on the chancellor to use tomorrow's Budget to "revive" Britain's economy after disappointing sales in February.
The British Retail Consortium (BRC) said like-for-like sales were up 1.5 per cent last month.
In February 2007, the comparative increase was more than double at 3.3 per cent, despite Mothering Sunday falling in March.
Stephen Robertson, director general of the BRC, warned shoppers remained "very price-conscious and reluctant to splash out on major purchases".
"After a blip at the start of the year as clearance sales temporarily got customers spending, belt tightening began in earnest in February when the Christmas and New Year credit card bills came home to roost," he explained.
"Both retailers and consumers are being squeezed by sharp increases in utility bills and fuel costs. So the chancellor's theme on Wednesday should be a Budget to revive the economy, rather than one piling on new taxes and regulations."
Helen Dickinson, head of retail at analyst KPMG, emphasised the misleading effect of Mother's Day.
"February's figures are slightly inflated by the timing of Mothering Sunday this year, as spending in the lead up to it is included this month, whereas this occurred in March in 2007," she claimed.
"Therefore caution about the outlook remains the order of the day."