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The UK’s latest high street sales statistics are the weakest since May.

According to figures from the British Retail Consortium (BRC), UK retail sales values are 1.6 per cent lower on a like-for-like basis over November 2010. On a total basis, sales are up only 0.7 per cent, against a 2.8 per cent increase in November 2010 on 2009.

Ellen Flood, director of online social shopping site Shopow says, ‘The recession and strong demand from consumers hunting for deals online has lead to an all-out price war, with many high street retailers losing their nerve in light of plummeting profit margins. There is a huge concern that they will lose out on business to the online retailers as they hunt for deals.’

Food sales growth was little changed from October's five-month low. Non-food sales fell further below their year-earlier level, with sales largely promotion-led. Clothing and footwear sales were hit by the mild weather, as well as by underlying uncertainty about jobs and incomes. Consumer caution continued to hit big-ticket homewares and furniture purchases most.

Non-food non-store (internet, mail-order and phone) sales growth fell back in November after picking up in October. Sales were 8.6 per cent up on a year ago, the weakest since March and half the previous November's increase.

BRC director general Stephen Robertson says, ‘There's a worrying lack of cheer in these figures. The weakest increase in sales for six months suggests consumers are keeping a tight rein on their spending, despite Christmas being so near.

‘The Autumn Statement's bleak assessment of the UK recovery is the latest in a sequence of poor economic news which includes falling sales, rising unemployment and stubbornly high inflation. The Chancellor offered some modest assistance but, this close to Christmas, more concrete progress on measures to inspire confidence in consumers and businesses is badly needed.’

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