Increase in retail sales are revealed today but caution on the near term outlook is advised.

The latest retail figures published by the Office For National Statistics (ONS) reveals that growth increased in the three months to January compared with the same three months a year ago by 3.2 per cent. 

In the three months to January the seasonally adjusted index for the volume of retail sales increased 1.5 per cent over the previous three months.

Between December and January, the volume of retail sales rose by 0.7 per cent.

While retail sales do appear encouraging Barclays Commercial (LON:BARC) have said they remain cautious on the fortunes of high street retailers over the course of the next few months.

It would appear that fears that the promotions had begun too early in December to sustain the traditional January sales period appear to have been over-sceptical, with offers continuing to entice buyers both on and off the high street.

The clothing and footwear sector has experienced the strongest performance with an increase in sales volume of 5.2 per cent in the year to January. The strength of the sector can be partly attributed to consumers stocking up on bargains at heavily reduced prices.

However the good fortunes being enjoyed by the clothing and footwear sector were not enough to save JJB Sport subsidiaries Original Shoe Company Limited and Qubefootwear Limited which were both put into administration this month.

"Retailers, although encouraged by these results, remain cautious looking ahead through February and March as these will undoubtedly be leaner times. With any increases in sales volumes being at the expense of margins and profits they must guard expectations and work hard to continue to entice customers through the door,” said Richard Lowe, Corporate Director, Retail and Wholesale, Barclays Commercial Bank.




 

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