Retail sales growth short-lived

Retail sales growth short-lived

	Published : Mon, 02 Jan 2006 14:05 By : Phil Bateman Print this Story

LONDON: The retail boom predicted by many seeing the crowds on Boxing Day at malls and the high streets seems to be short-lived. Statistics relating to the number of people who went shopping between Christmas and the New Year reveal that in percentage terms it is lower than in 2004.

Consumer research firm FootFall said yesterday there is a 12.4 per cent fall in the number of people who shopped during the period compared with 2004. It said the weekend saw a significant deterioration.

Footfall's marketing manager Natasha Burton said the overall figures were "disappointing". She however, said a final picture can emerge only when individual retailers announced their sales figures.

She said shoppers had taken advantage of the holiday days and the bargains offered by retailers. But, the numbers fell as the week progressed, as people returned to work and "had had their fill of bargain hunting for the week", she added.

Many retailers had organised sales with discounts of as much as 75 per cent, but shoppers appear to have shunned the offer after an initial enthusiasm.

Another firm SPSL, which monitors the high streets, said the number of people visiting the shops fell 13.4 per cent on Thursday last and to 15.9 per cent on Friday.

Banks are saying consumer debt -- totalling a huge 1,100 billion -- is one factor that is holding back shoppers. Normally, the holiday season sees a growth in credit, but this year, there appears to be a reversal of this trend, which is ascribed to the increasing number of personal bankruptcies in the country during the year.

Debt counselling service provider One Advice said that more than 250,000 people have debts of at least 50,000 pounds each on account of credit cards, personal loans, overdrafts and other unsecured debts.

Retail consultancy Verdict said high street sales grew more slowly during Christmas compared with the same period in 2004. The firm said the year as a whole saw the lowest growth in the retail sector for 20 years. Verdict's managing director Richard Hyman said sales for December had a total value only 2.5 per cent higher than those in December 2004. But sales in December 2004 were 3.3 per cent higher than in December 2003.