Sales will take their toll
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Interesting figures released today by the Office for National Statistics show that retail sales, excluding fuel, grew 0.6% in December 2011 compared with November 2011. These figures represented a 1.7% increase from December 2010. This seems to paint a rosy picture.
However, we need to look at the background of this increase in retail sales. So many of the high street stores started their sales very early this year, many with enticing customers in with huge pre Christmas price cuts. So even though sales are up it is likely that profits will be down considerably.
Over the past few weeks retailers have reported their own individual figures.
John Lewis, Sainsbury’s, Next and Burberry are some of those who had good Christmas periods.
Others, like Tesco, Argos and HMV, did not.
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