ONS retail sales figures - Barclays commentary
Barclays Commercial Bank comments on the Office of National Statistics's (ONS) January retail sales figures.
Commenting on the Office of National Statistics (ONS) retail sales figures for December 2007, published today, Paul Clarke, National Director, Retail & Wholesale sectors, Barclays Commercial bank said:
"These statistics are certainly weaker than expected. There was a rush to the shops in the week before Christmas, as retailers started their sales early, but this does not seem to have compensated for a very slow start to the month.
"Internet sales however are performing well, recording strong growth of 16%. Online retailing is now beginning to steal a march over the High Street and bricks and mortar retailers will now have to focus on improving the shopping experience to persuade consumers into their stores.
"Retailers' margins are being hit by a triple whammy of rising energy bills, high commodity costs and ever more competitive pricing.
"Retailers will be looking to put Christmas behind them and now turn their attention to Easter, which is the next important landmark in the calendar. fiith it falling early this year, they will be hoping that the rain stops soon and that consumers will be tempted out on to the High Street."
London quote
"However every indication is that London appears to have bucked the trend and performed relatively strongly. With reportedly lower City bonuses, the Capital's shops were still busy."
Underlying retail sales growth (underlying is defined as latest three months on the same
period a year earlier)
Latest month: +3.6%
Previous month: +4.7%
Sector analysis (underlying basis)
Other specialist non-food stores: +5.2%
Non- store retailing and repair (including internet sales and mail order): +15.1%
Household goods stores: +7.3%
Textiles, clothing and footwear: +1.0%
Non-specialised stores (including variety and department stores): +4.9%
Predominantly food stores: +0.9%
Shop prices (year on year percentage change)
Latest month: -1.2%
Previous month: -1.1%
Inflation (for comparison)
Latest month: +2.1%
