Heavy UK snowfall hit retailers

Britain's heaviest snowfall for 20 years hit retailers hard last week, and a pick-up in business in January was unlikely to continue in coming months, researcher Experian said today.

Shopper numbers for the week ending Saturday, February 8 fell 8.9 percent on the week before and were down 10.9 percent on the comparable week last year, Experian said.

"All elements of retail activity were hammered as Britain came to an economic standstill last week," it said.

Earlier today, the British Retail Consortium said the value of like-for-like retail sales rose 1.1 percent in January, the first increase since last May and driven by food sales and heavy price cutting.

"The first quarter of 2009 will continue to see aggressive discounting, particularly in clothing and footwear," Experian said.

"While this will have sustained volumes in early January, it seems likely that falling prices will not be able to stave off the continuing decline in retail activity, with a significant impact on retailers' bottom lines," it said.

Experian forecast a fall of at least one percent in retail sales volumes in the first quarter of this year, as shoppers curb spending amid rising unemployment, sliding house prices and fears of a deep recession.