Christmas retail sales hit three-year slump

Retailers have suffered the lowest Christmas sales growth in three years according to figures from the British Retail Consortium (BRC). The figures come as retailers, including Currys and Land of Leather, announce profits warnings.

The figures show that UK retail sales rose just 0.3% between December 2006 and December 2007, the worst performance over Christmas since 2004.

Helen Dickinson, head of retail at accountancy firm KPMG, says: “Sales did grow in December but, as the worst performance since March 2006, growth can only be described as weak. In the lead-up to Christmas there were huge daily swings as shoppers replaced even spending patters with a smaller number of bargain-hunting ‘big swoops’.”

Sales of health and beauty products and furniture were among those worse hit over Christmas, according to the figures.