BRC-KPMG London Retail Sales Monitor

BEST DECEMBER FOR AT LEAST SEVEN YEARS

•Retail sales in central London in December were 12.0% higher on a like-for-like basis than a year ago, when sales had fallen 0.7%, as financial turmoil hit consumer confidence – especially in the City. This was the best December since the survey began in 2002.

•Retail footfall in December fell back below its year-earlier level, to show the weakest performance since September. Wintry weather and less discounting than a year ago meant people made fewer shopping trips but it seems those that did get out spent more.

•Sterling’s weakness continued to attract overseas visitors, especially from western Europe, China and the Middle East. Chinese visitors in particular were much more numerous than a year ago.

•Food sales held up well. Clothing and footwear were driven by wintry weather as well as gift buying. Beauty products and jewellery were popular. Homewares showed gains for many but against a very weak December 2008. Big-ticket items such large electricals and furniture did well in clearance sales.

Stephen Robertson, Director General, British Retail Consortium, said:
“This is a dazzling performance, London's best December sales growth since this survey began in 2002 and all the more impressive following a strong November. The result is boosted because the comparison is with terrible figures a year ago when financial turmoil hit London consumers especially hard but this is outstanding growth by any interpretation.

"Generally customers were a lot more positive than the year before, so more willing and able to spend. A big Saturday Boxing Day start to many post-Christmas sales produced a strong 'extra' day's trading for lots of retailers and the weak pound tempted overseas shoppers to London.

"Wintry weather kept people away from shops on some days but when they did go they spent more. But, given the prospects for jobs, wages and taxes in 2010, don't assume customers will go on spending like this."

Helen Dickinson, Head of Retail, KPMG, said:
"Although the rest of the country saw a relatively slow build up to early Christmas trade in November, London bucked this trend and this strong performance continued in December. These are great figures and Christmas really provided an opportunity for department stores to outperform, leading to a pronounced polarisation between retailers who got the proposition right and those that did not.

December's results also showed the growing importance of post-Christmas trading and the ongoing weakness of the pound has certainly continued to attract overseas visitors."