According to the CBI, 13% of retailers expect sales to remain below the seasonal norm in January. Andy Clarke, Chairman of the CBI Distributive Trades Panel, said: “Although individual retailers may post healthy-looking Christmas numbers compared to the same time last year when we were in the grip of the recession, conditions across the whole of the sector are likely to remain challenging in 2010. The recent growth in retail sector sales is expected to fizzle out in the New Year.”

Retail growth will be further hindered by the VAT increase in January as stores have to change the prices of everything on the shelves during their busiest trading period.

The volume of orders placed with suppliers rose this month (+7%), albeit at a slightly slower rate than expected (+13%); however, mirroring the movement in sales volumes, orders are also expected to be flat in the New Year.

In the wholesale sector, sales volumes were static (+1%), beating expectations of a fall (-31%). A modest sales growth is anticipated in January (+4%). Clothing, textiles and footwear wholesalers saw the strongest sales growth since March 2004 (+43%).

See also:
Christmas Fashion Sales on the Rise
Lingerie Sales Increase at John Lewis

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