Shoppers still lack confidence, say the British Retail Consortium.

The British Retail Consortium (BRC) together with consultancy firm KPMG, reports that like-for-like UK retail sales have fallen by 1.2% in March 2009 compared to the previous year.
 
The Retail Sales Monitor, which covers the five weeks from 1 March 2009 – 4 April 2009, measures changes in the actual value of retail sales from a sample of retailers. It showed that like-for-like sales fell by 1.2%, and rose a mere 0.6% on a total basis (which includes new store space) compared to March 2008 when sales were particularly weak, hit by the unseasonal poor weather.

However, all is not gloomy as slight areas of growth have been shown, particularly within food sales and non-food non-store sales, with the increase in food sales partly inflation-driven.

Non-food non-store sales (internet, mail-order and telephone sales) were 10.8% higher in March than compared to the same period in 2008, although down slightly compared to February 2009. Sharon Hardiman, Head of Non-Store Retailing at the BRC attributes the slight lull compared to the previous month to the fact that Easter and poor weather in March 2008 may have boosted online sales.

The differing weather conditions and change in Easter trading period make the comparisons difficult, but the major concern lies with homewares and furniture sales, which remain consistently down on the same time a year ago.

Stephen Robertson, Director General of the BRC commented: “A slight air of pre-spring optimism tempted customers to buy new-season clothing and women’s footwear. But this is unlikely to be the basis of sustained improvement. Customers are still worried about jobs and their own finances – so they’re keeping spending under tight control.”

However, Helen Dickinson, Head of Retail at KPMG showed a slight air of confidence: “While 0.6% growth in the value of total retail sales is nothing to write home about, it is better than expected given that we still have the anticipated uplift due to Easter trading to come in April.”