UK retail takes a dive

UK retail sales fell by 1.6% in March 2008, according to the latest figures from the British Retail Consortium (BRC). The fall in like-for-like sales, compared with March 2007, was the worst since July 2005. Food sales slowed after two strong months, showing the weakest growth since July 2007.

With shoppers increasingly price-conscious, value lines did well, but premium healthy-eating ranges continued to show growth for some. Wines and spirits sales rose before the Budget tax increases took effect.

BRC director general Stephen Robertson 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. With recent retail profit warnings, it is further proof that trading is extremely tough but retailers are fighting back by keeping prices low and delivering extra value."

The BRC said that although comparisons were difficult because of the early Easter, poor weather and staggered school holidays, “the additional spending for Easter being in March this year but in April last year would normally be expected to result in a year-on-year increase in sales.”