Sales up, but not in fashion

UK retail sales were up 3.1% on a like-for-like basis, compared with January 2006, when sales had risen only 0.2% after a strong Christmas. In fashion, overall sales were slightly down on a year ago. Womenswear was the weakest since June, as sales slowed from December to show no growth on a year ago. Menswear also slowed though remained just positive, but childrenswear fell further below year-earlier levels. The mild weather adversely affected heavy knits and coats - apart from some good sales of young fashion coats - but outerwear, knitwear and warm accessories picked up on cold snowy days. Clearance sales were generally successful, albeit often with heavy discounts. Dresses, especially shorter styles worn with jeans or leggings, sold very well, but trousers and casual jackets struggled. Handbags and jewellery slowed after a Christmas boost. Men's suits did well in the sales and in promotions, while shirts and casualwear were more difficult.

Department stores sales growth was mixed, with some resorting to heavy discounts to achieve clearance, particularly on home and leisure. Womenswear, accessories and beauty often outperformed menswear. Helen Dickinson, Head of Retail, KPMG comments "Not a bad set of results on the face of it, with like-for-like sales in January being 3.1%, the highest monthly increase since July 2006. However, it merely reflects the continuation of the trend which we saw in December, whereby it was only strong sales late in that month that gave many retailers something to cheer about over Christmas. It also comes on the back of a weak performance in January 2006.