Weekly Retail & Leisure News - 16 February, 2015
Britain's recovery is gathering momentum, as low inflation leaves people with more money to spend and may encourage consumer spending, according to the CBI, which has upgraded its growth forecast for this year from 2.5% to 2.7%. Official figures this week confirmed that consumer prices are rising at their slowest rate since comparable records began in 1989. The figures come as supermarkets continue to compete on price, with Morrisons cutting basics prices by 22%.
As we noted last week, Kantar Worldpanel, reported for the 12 weeks ending February 1, that the grocery market grew at 1.1%. Two of the recent winners of this growth are the German discounters Aldi and Lidl. They both have gained ground relentlessly and are now responsible for more than 10% of the country's grocery sales. Aldi's sales rose 17.3% year on year and Lidl's were up 13.8% in the 12 weeks to January 31 impressive when compared with an increase of only 0.7% for all supermarket sales.
Another retailer who has announced positive retail sales figures this week is Dunelm. Dunelm's pre-tax profits increased by 10.7% to £68.2m as LFL sales rose by 6.2% for the 26 weeks to December 27. Revenues were up 14% to £406.4m during the period. As a predominantly out of town retailer it may have benefited from the positive growth reported in out of town footfall locations rising 1.5% year-on-year. Total footfall however in January was 1.2% lower than a year ago, but down on the 0.7% fall in December according to the BRC.
JLL was corporate partner of the CBI's annual Conference in 2014
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Director, Head of Retail Research (UK & EMEA)
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Director, Head of UK Retail & Leisure
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