UK retail sales in March worst for three years
Tuesday, 15 Apr 2008 08:27
Even discounting could not boost sales over March
UK
retail sales in March were the worst for three years despite the early Easter, according to the latest figures.
The British Retail Consortium (BRC) said UK retail sales fell 1.6 per cent on a like-for-like basis, compared with March 2007, when sales were up 3.9 per cent. The decline was the worst since July 2005 when cold wet weather hit sales.
Stephen Robertson, director general of the BRC, said: "This is the first year-on-year fall in like-for-like sales for two years and the worst result for nearly three years.
"Here is the strongest evidence yet that customers are making serious economies and are increasingly concerned about the future."
Clothing and footwear recorded their worst performance in eight years, while furniture sales lagged despite aggressive promotions.
Analysts blamed the Easter weather and low
consumer confidence for the sales decline.
Helen Dickinson, head of retail at KPMG, said: "Retailers were hit by the double whammy of an early Easter and poor weather even before factoring in the slowdown in consumer spending on the back of rising inflation, falling
house prices and the impact on consumer confidence of the credit crisis.
"Consumer confidence remains on a knife-edge."
With a weak property market and rising household bills, consumer confidence is at an all-time low. Although the Bank of England did cut
interest rates last week to five per cent to give the economy a soft landing, analysts note this will only make a real difference if banks pass on the reduction.