UK retail sales have fallen by 0.4% in November compared to the same time last year, a survey by the British Retail Consortium revealed. The new figures show that sales have fallen for the 2nd consecutive month, with October seeing a 0.1% drop; this is the first time sales have dropped for two months since the survey began in January 2005.
The report went on to say that UK retailers were in for a “nerve-wracking Christmas”.
The food and drink sector was the only one to see a rise in November, and is thought to be lifted by heavy discounts offered by the large supermarkets.
For many retailers Christmas is the most important period of the year, with many of them taking up to three quarters of their annual income in the six weeks leading up to the festivities.
It is hoped that the recent government VAT cut from 17.5% to 15% will raise sales, but with major UK retailers like Woolworths and MFI entering administration, there is a growing concern that other companies could see a similar fate.
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