20th February 2012
When it comes to retail, the news often appears to be gloomy. Falling spending levels, stores going out of business and decreasing consumer confidence have all hit the front pages in recent months.
While this may not lead to many retailers feeling particularly bright about their future, new statistics appear to have given them fresh hope.
According to the British Chambers of Commerce (BCC), January was a positive month in British stores and for online retailers. Indeed, one expert has described the results as significantly stronger than expected.
David Kern, chief economist at the BCC, said a promising January came on the back of an improved December, which was boosted by pre-Christmas discounts and offers.
However, most analysts still expected a slight fall in activity to be recorded in January, which was not the case, as takings were up by 0.9 per cent on the month and by two per cent year-on-year.
"This increase shows that the economy is slowly improving and supports our view that GDP will return to positive growth in the first quarter of the year. The figures support the view that inflation in the high street is falling. As this trend continues, we expect to see further modest increases in consumer spending later this year."
Online retailers could be anticipating a new wave of business on the back of the figures – something investing in protective packaging could help them to prepare for.
Hopes of an e-commerce boom were raised last week when Knight Frank released a report that suggested online retail is becoming an increasingly important part of the UK economy.
Despite the flickers of light at the end of the runnel, Mr Kern warned the government must stick to its budget reduction plans in the hope of laying the foundations for long-term growth and prosperity.