November rate of growth slowest for eight months
Retail sales grew at their slowest annual rate for eight months in November, with the mild weather affecting trading, according to the British Retail Consortium.

Like-for-likes rose 0.5 per cent, compared with an increase of just 0.8 per cent in November last year, when sales were still affected by the aftermath of the July terrorist bombings in London.

The three-month like-for-like growth trend slowed to 1.9 per cent, from 2.5 per cent for the three months from August to October. Total sales rose 4.3 per cent over the three months, compared with 5.2 per cent previously, reflecting the continued growth of retail space.

BRC director-general Kevin Hawkins said: 'In recent years, November has been a consistently poor month for sales, so these latest figures are not really surprising. It would be unwise to jump to conclusions about how Christmas trading will turn out.'

Food continued to drive overall sales. Clothing and footwear were hit hard by the mild weather and furniture and big-ticket homewares also struggled. Sales of household goods and textiles and smaller home accessories were sluggish as well.

Electricals sales continued to vary across sectors and stores and it was another difficult month for DIY and gardening, where sales were often dependent on discounts.

Trade at department stores remained tough, especially in clothing and footwear, because wet weather reduced footfall and sales.

KPMG head of retail Helen Dickinson said: 'Performance deteriorated as the month progressed and reflects the delicate state of the retail sector in the UK. A real challenge lies ahead, as December 2005 showed total like-for-like growth above that of November and hence will be that much harder to beat.'

Seymour Pierce analyst Richard Ratner said: 'While the BRC tries to pass this off as November blues, we worry about December with food price inflation, the top end doing well and the internet's increasing market share all putting pressure on the high street.'

Last week, Ratner expressed concerns that retailers may be heading for the worst Christmas in 25 years.