Retailers see bumper start to Christmas sales

Retailers enjoyed a bumper start to Christmas with the fastest year-on-year sales growth in a December survey since 1987, according to the Confederation of British Industry's (CBI) monthly Distributive Trades Survey, published on January 3.

The survey shows that in the first two weeks of December retail sales volumes grew by substantially more than expected. While 65 per cent of retailers reported that sales volumes were up, 17 per cent said they were down. The balance of plus 48 per cent compares with plus 29 per cent in November and plus 19 per cent in October.

Sales were more above average for the time of year than at any time since December 1986. They are expected to remain above average in January although to a lesser extent.

Alastair Eperon, Chairman of the DTS Panel and a Director of Boots, said: "December's significant increase in sales growth, following two months of weak growth, is very encouraging. Early indications show that the robust start to the Christmas period continued throughout December. It is vital that consumer spending remains strong when other parts of the economy are so weak. If the retail sector can maintain this position it will provide underlying strength to the UK economy as we go into the New Year."

Wholesalers' sales volumes remained stable even though a modest increase in annual growth had been expected. Business was considered to be moderately below average for the time of year. It is now expected to be further below average in January.

Motor traders' sales volumes grew strongly in the year to December, despite expectations of a moderate decline. Volumes grew at their fastest rate since September when they were boosted by the release of the new car registrations. Sales are expected to continue to grow strongly in January although at a slower rate than in December. (CD)