11 March 2008, 21:24 PM
  • Although UK retail sales only rose by 1.5% compared with February 2007, an early Mothering Sunday allowed food and drinks to do well, according to the latest BRC-KPMG Retail Sales Monitor.

The report states that food sales remained strong in February despite consumer confidence falling to all time lows. Other sectors didn’t perform as well and continued discounting wasn’t enough to prevent clothing and footwear being down compared to last year’s figures.

Stephen Robertson, director general at the British Retail Consortium, says, “After a blip at the start of the year as clearance sales temporarily got customers spending, belt tightening began in earnest in February when the Christmas and New Year credit card bills came home to roost. Although a welcome boost was provided by this year’s early Mothering Sunday, which helped food sales, as well as health and beauty, customers remained cautious.

Joanne Denney-Finch, chief executive at IGD, adds, “The early Mothering Sunday flatters the figures, but food and drink held up well throughout February, continuing a strong start to the year. Easter is early this year with activity already well-advanced and this will make accurate year-on-year comparisons for March harder to read than usual.

“However, the UK food and grocery sector appears more competitive than ever as retailers contest every inch of ground. As shoppers tighten their belts and indulge only selectively, retailers will have to work extremely hard to entice incremental spend through the vital Easter season.”