Christmas no cracker for UK retailers

UK-based retailers had a disappointing Christmas with sales rising only 0.3% on a like-for-like basis compared to December 2006, while total sales were up 2.3%.

December’s growth was the weakest month since March 2006 and it was the lowest December total since 2004.

“This result is somewhat worse than we expected and points to a very challenging first half for 2008,” commented Kevin Hawkins, director general of British Retail Consortium. “Given that the full effects of the Bank’s previous increases in interest rates have yet to be felt by many households, retailers and manufacturers alike need a rate cut now – preferably a full half point.”