Sector: Retail

According to the British Retail Consortium (BRC), shoppers went to town at London stores in the run-up to Christmas, ensuring that the capital’s retailers enjoyed their best December for at least seven years.

In its latest retail report, the BRC said like-for-like sales in the five weeks to 2 January grew by 12 per cent year-on-year, representing the largest percentage hike since the survey began back in 2002, with London significantly outperforming the rest of the country.

Intriguingly, the freakish cold snap, allied to less discounting by retailers, meant fewer people actually made it to the high street. However, those shoppers who did arrive in the capital more than compensated by splashing out more cash. London retailers also received a boost from the depleted pound, with well-heeled tourists arriving from Western Europe, China and the Middle East.

Stephen Robertson, director general at the BRC, described the performance as ‘dazzling’, adding that while ‘the result is boosted because the comparison is with terrible figures a year ago, when financial turmoil hit London consumers especially hard, this is outstanding growth by any interpretation’.

Another influential commentator, Howard Archer, chief UK economist at HIS Global Insight, characterised the performance as ‘extremely impressive’, though he remarked that the upside for consumer spending is likely to be limited in 2010, given employment, tax and debt concerns.