Post by Libby on Feb 10, 2009 20:44:39 GMT
news.sky.com/skynews/Home/Business/Retail-Sales-Up-In-January-Food-Price-Rises-And-Discounting-Aid-High-Street-Growth/Article/200902215220236?lpos=Business_First_Buisness_Article_Teaser_Region_8&lid=ARTICLE_15220236_Retail_Sales_Up_In_January%3A_Food_Price_Rises_And_Discounting_Aid_High_Street_Growth
A slight rise in food prices spurred January retail sales to a surprise 1.1% like-for-like jump in January.
Food prices have crept up and cash-strapped Britons continue to eat in.
Heavy discounting also helped drive the best performance on the UK high street since May, according to latest figures.
Data collated by the British Retail Consortium and KPMG showed the first overall rise for three months, with comparable food sales up 5.1%.
Non-food slipped 1.6%, but the fall was still far lower than those seen in recent months.
The news comes a week after Halifax revealed an unexpected 1.9% hike in house prices last month in what was seen as a glimmer of hope for the country's battered economy.
The BRC said today's retail figures "gave room for optimism", but was quick to warn that the rise in January sales could just be a "blip".
Helen Dickinson, KPMG head of retail, said: "The figures don't mean consumer confidence has returned. "The results are heavily skewed by food prices creeping back up again after the heavy promotional activity in December and by a reasonably strong performance in the first week of the month."
The increasing trend to shop online helped maintain strong non-food internet sales growth, up 19% in January.
However, sales in clothing, footwear, homewares and health and beauty remained down on January 2008.
The food and drink sector enjoyed its best growth since June, while sales of hard-hit electronics, furniture and floorings were boosted by cut-price offers.
Stephen Robertson, director-general at the BRC, said the figures suggested there had been some "pent-up demand".
"But the fundamentals haven't changed," he warned.
"Job fears are mounting. Consumer confidence is at record lows. It remains to be seen whether January's discount-driven growth was just a blip," he added.
A slight rise in food prices spurred January retail sales to a surprise 1.1% like-for-like jump in January.
Food prices have crept up and cash-strapped Britons continue to eat in.
Heavy discounting also helped drive the best performance on the UK high street since May, according to latest figures.
Data collated by the British Retail Consortium and KPMG showed the first overall rise for three months, with comparable food sales up 5.1%.
Non-food slipped 1.6%, but the fall was still far lower than those seen in recent months.
The news comes a week after Halifax revealed an unexpected 1.9% hike in house prices last month in what was seen as a glimmer of hope for the country's battered economy.
The BRC said today's retail figures "gave room for optimism", but was quick to warn that the rise in January sales could just be a "blip".
Helen Dickinson, KPMG head of retail, said: "The figures don't mean consumer confidence has returned. "The results are heavily skewed by food prices creeping back up again after the heavy promotional activity in December and by a reasonably strong performance in the first week of the month."
The increasing trend to shop online helped maintain strong non-food internet sales growth, up 19% in January.
However, sales in clothing, footwear, homewares and health and beauty remained down on January 2008.
The food and drink sector enjoyed its best growth since June, while sales of hard-hit electronics, furniture and floorings were boosted by cut-price offers.
Stephen Robertson, director-general at the BRC, said the figures suggested there had been some "pent-up demand".
"But the fundamentals haven't changed," he warned.
"Job fears are mounting. Consumer confidence is at record lows. It remains to be seen whether January's discount-driven growth was just a blip," he added.