British retail sales growth slowed last month, as consumers proved reluctant to splash out on expensive items at a time of public spending cuts and higher taxes.
The British Retail Consortium said sales values were 0.7 per cent higher than a year ago on a like-for-like basis. Total sales, which include new floorspace, were 2.8 per cent higher.
Christmas trading started slowly as cold weather towards the end of November also undermined sales, despite many stores offering promotions, the BRC said.
"It has been another tough month," said BRC director general Stephen Robertson. "Total sales growth has been weak now for eight months in a row and given that VAT has pushed up annual inflation - boosting sales values - underlying volume growth is virtually zero."
Shoppers cut back on spending due to worries about their personal finances and job prospects as the economy recovers from an 18-month recession that ended in late 2009, he added.
Despite the slightly lower growth rate, Mr Robertson said it was a good sign that the coalition government's austerity measures, outlined in October, had not made things even worse.
Clothing sales returned to growth after a weak October, boosted by improved sales of winter clothes and boots.
Food sales crept higher, although part of the rise was down to higher food price inflation. The cold weather towards the end of November helped sales of hearty food like soup and pies.
Sales of big ticket items like televisions and white goods were mixed, despite support from discounting and promotions.
Furniture and floorings dropped further below their year-earlier level, while sales of kitchens and bathrooms were often promotion-led.
Internet, mail order and phone sales picked up strongly in November to stand 17.6 per cent higher than a year ago, compared with 12.8 per cent in October.
"A slow and uneventful start to Christmas trading," said Helen Dickinson, head of retail at KPMG. "Retailers will be hoping things pick up significantly in the final weeks, although regaining ground lost in the early run-up to Christmas is difficult."
Retail sales could come under further pressure from January when the VAT sales tax rises to 20 per cent and public austerity measures begin to take hold.
The cold snap in late November and early December that disrupted roads and trains had "dramatically undermined" sales over the last 10 days, the BRC added.
Reuters