Outstanding recovery in consumer spending in the final quarter
of 2009
- Over 100% increase in the number of retailers reporting like
for like sales rises compared with Q4 2008
- Food and drink retailers consistently performing well in the
economic downturn
- No recorded profit warnings for the third consecutive
quarter
- 75% increase in the number of positive trading statements
compared with Q4 2008
Over two thirds (70%) of listed retailers on the London Stock
Exchange have reported an increase in like-for-like sales in the
fourth quarter of 2009, the highest level since early 2008.
The Grant Thornton Quoted Retail Companies Index,* a review of
listed retailers, found that a large proportion of retailers appear
to be defying the worst effects of the recession by
exhibiting positive sales growth for Q4 2009. There has been
over a 100% increase in the number of retailers reporting like for
like sales** increases in Q4 2009 compared with Q4 2008. 70%
of retailers reported an increase in the current quarter compared
to only 29% of retailers in the comparative period last year.
"Many categories of shoppers still have significant spending
power and belatedly appear to have used some of this power in the
last quarter of 2009. Whilst fear of unemployment and the
need to bring down unsecured debt has certainly inhibited many
consumers, those in more secure employment and those with mortgage
payments reducing through falling interest rates still feel able to
spend if the price is right. Many retailers have also benefited
from picking up market share in their sub sectors from casualties
earlier in the year," says
David Bush, Head of Retail Services at Grant Thornton.
Additionally, 78% of all listed retailers recorded positive
total sales growth (ie sales from comparative stores and
non-comparative stores) in Q4 compared to an equivalent figure of
only 38% in the same period last year. In particular there have
been some stronger recent performances from the household sector
with Carpetright and Kingfisher (including B & Q) recently
performing well.
"With the VAT rate returning to 17.5% consumers are
clearly buying ahead of the change to make considerable savings on
high ticket products especially in the homeware/ white goods
sector, " continues Bush.
Food and drink retailers
Food and drink retailers have shown a consistently strong
performance in like-for-like sales with all retailers in this
category displaying positive like for like sales growth over the
last three quarters of 2009.
"There have been no profit warnings for three consecutive quarters
in what has been a largely traumatic time for retailers.
Also, the percentage of positive trading statements is
significantly up compared to this time last year. Therefore I
believe that this trend implies a more positive outcome over the
crucial Christmas trading period than was previously anticipated."
concludes Bush.
For further information, please contact:
Suvra Datta, Grant Thornton press office, 020 7728 2375 or via
email on suvra.datta@gtuk.com
* Grant Thornton's Quoted Retail Companies Index is a review of the
quarterly trading statements issued between 1 October and 31
December 2009 by those General Retailers and Food & Drug
retailers listed on the London Stock Exchange.
** Like- for-like sales -Stores with the same number of
trading weeks in the current quarter and last year's comparable
quarter.