Cash Piggy

The first month of 2009 brought some relief for growth-starved UK. Retail sales in food saw a growth spurt, which many believe is a result of the heavy discounts offered to shoppers. Data showed an increase of 5.1% as compared to the previous quarter and a growth of 1.1% vis-a-vis the same time last year. It is heartening to note that the joy is being shared equally by the consumer as well as the retailer. However, the British Retail Consortium has warned against renewed hope before the spurt consolidates to a steady growth curve. This is owed to the “strong promotional activity” in December 2008, as quoted by KPMG's head of retail Helen Dickinson, which carried on till January this year. For people who were impulsive in extrapolating these promising figures, this is not good news at all. At least, not until the next few months prove that the growth is not confined to January alone.

Sales with respect to non-food items, on the other hand, fell by 1.6%. However, this isn't depressing as compared to the slump last year. Although the employment numbers are on the rise and the fear of insolvency is palpable, it is hoped that the discounting strategy and other growth measures will heal the crippled economy and put the skepticism to rest. These recent developments offer some encouraging signs indeed, despite all the references to a temporary glimmer.