DIYWEEK.net

This is the verdict of the BRC-KPMG Retail Sales Monitor, which showed a rise of 4.2% in UK retail sales throughout December, compared with 2008.
It was good news for homewares, which saw sales gains, although against larger declines in 2008, and Christmas obviously had an impact on sales of some lines, including power tools. However, it was good news more or less across the board as December figures showed the best total sales growth for a December since 2005.

BRC director general Stephen Robertson said: "These are stronger figures than we dared hope for. After a surprisingly muted November, this is the best total sales growth for a December since 2005 and goes well beyond just making up for the sales fall the sector suffered a year ago. The figures were certainly helped by the comparison with last December's terrible results but customers clearly felt more confident about spending than they have for some time. Sales growth was also helped by the VAT cut dropping out of the 12-month comparison, December being the first and only month where the 15 per cent rate is the same as a year earlier."

However, he also warned that retailers should not use the December figures as an indicator of the 2010 trading as they may be "only a temporary respite on the painful road to recovery".

By market sector the report had this to say:

Department Stores
It was a good month for most, helped by special sales days, promotions and clearance sales beginning on Boxing Day, a day earlier than last year, thus effectively giving an extra trading day. Some were hit by snow mid-month but trade picked up in the pre-Christmas week as people returned to shop in earnest, for winter clothing and footwear as well as Christmas gifts. Homewares, leisure and beauty products did well and instore restaurants benefited from increased footfall.

DIY/Gardening
It was the usual quiet December, but also hit by the snowy weeks which curtailed outdoor DIY and gardening. Indoor DIY and decorative ranges benefited from the trend to spending more time at home and improving rather than moving house. Power tools were popular as Christmas gifts and houseplants also showed some uplift.

Homewares
Sales growth in home accessories and house textiles increased from November, but the gains were against larger declines last December. Clearance discounts encouraged some to trade up when buying bedding and linens, decorative accessories and kitchenware. But many purchases were still well-researched and justified by practicality or necessity.

Furniture and Floorcoverings
After three good months, albeit against sharp declines a year earlier, sales growth slowed. It was a quiet period for fitted kitchens and bathrooms but upholstery, beds and bedroom furniture held up for most. Pre-Christmas delivery guarantees attracted shoppers preparing for Christmas.