Retailers endured one of the worst Januarys on record, with like-for-like sales down on 2011’s figures.
Already smarting from a dismal 12 months last year, UK shops went on to suffer their second-worst January since the British Retail Consortium’s (BRC) survey began in 1995.
Overall, like-for-like sales were down 0.3%, with the 2.1% increase in total sales comparing poorly to the 4.2% rise recorded for January 2011.
According to the survey the worst-hit sectors were non-food, food and drink and home accessories.
And non-food, non-store items – a notorious boom sector – also saw the rate of their sales growth fall from 18.5% in December to 11.3%.
Stephen Robertson, director general of the BRC, said: “It’s clear people don’t feel any better about the immediate future than they did 12 months ago.
“Customers parked their worries in December and spent, encouraged by discounts.
“Now, in the New Year, reality has bitten again as concerns about jobs, wages and household costs reassert themselves.”
And, on a three-month weighted-average, non-food retailers also suffered a 0.8% drop in like-for-like sales.
A number of high-profile retailers fell into administration in January, including discount fashion chain Peacocks and lingerie specialist La Senza.
However, buoyed by the growth of food, overall like-for-like retail sales edged up 0.3%.
Helen Dickinson, head of retail at KPMG, added: “Many retailers are rethinking their entire business models in a desperate attempt to adapt to this low growth environment and pricing remains more strategic than ever before.”
By Andy Pearce
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