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28th January 2008
Sales for Christmas slow
Consumer spending over the Christmas period slowed to its lowest rate in more than a year, research has revealed.
According to figures from the Office for National Statistics, retail sales dipped by 0.4 per cent in December 2007 in comparison with November, the slowest rate of growth since March 2006.
Kevin Hawkins, the director general of the British Retail Consortium, revealed that 2008 could be tough for retailers unless interest rates were cut.
He said: "The outlook for 2008 is equally challenging, with many customers' personal finances under increasing pressure and retailers' costs also rising well ahead of inflation.
"There is, however, unlikely to be any let-up in price competition, which means retail margins will continue to be squeezed," he added.
Urging the Bank of England to help to lift the gloom, he concluded: "These figures strengthen the case for a further rate cut in February. Having stalled in January, the Bank of England must look to build some rate-cutting momentum to give consumers and retailers the boost they desperately need."
Meanwhile, according to Capegemini, online sales increased by 50 per cent in the final quarter of 2007, with sales reaching £15.2 billion.
(c) 2008 Adfero Ltd.
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