U.K. retail sales fell in January, figures released by the British Retail Consortium Tuesday show, as consumers prepare for higher prices and focused on buying essentials.
For the four weeks from Jan. 1 to Jan. 28 retail sales decreased by 0.6% on a like-for-like basis compared with January 2016, when sales were up 2.6% on the preceding year. Total sales rose by 0.1% in January, well below the three-month moving average of 1.1% and compared to a 3.3% increase in January 2016.
"We've seen the slowest growth of the festive period since 2009. Closer inspection reveals this was driven by slowing sales in non-food sectors," BRC CEO Helen Dickenson said in a statement. "These figures suggest that 'caution' was top of new year shopping list ... With the signs pointing to upward pressures on shop prices given rising import costs, all eyes will be on the impact of inflation on consumer spending."
The FTSE 350 General Retailers Index was down 0.11% to 2,415.24 in the first hour of trading on Tuesday. The index has lost 4.63% down over the past three months. The disappointing figures also put renewed pressure on the pound, which fell to a two-week low of 1.2369 against the U.S. dollar.
Food sales in January increased 0.6% on a like-for-like basis and 2% on a total basis, ahead of the 12-month average growth of 1%.
Non-food sales however, grew by just 0.2% on a like-for-like basis and 0.3% on a total basis. This was the lowest growth since July 2012.
