In its monthly retail figures, the BRC said the three-month trend rate of growth improved in January to 1.1 per cent from 0.2 per cent in December for like-for-like sales, but slowed to 3.4 per cent from 4.0 per cent for total sales.
Sales fell back significantly after the clearance Sales ended. Food purchases slowed after their Christmas upturn, and clothing and footwear also dropped back. Home and leisure remained difficult, with sales mainly discount-driven.
Underlying trade remains tough because shoppers are still cautious and, although keen to take advantage of clearance promotions and discounts, they are still reluctant to commit to larger purchases, said the BRC.
'The message from every sector of our industry is the same. The squeeze on consumer spending continues unabated. The economy needs a cut in interest rates badly,' said BRC director-general Kevin Hawkins.
KPMG head of retail Helen Dickinson added: 'Most retailers approached the Christmas results announcements with a high degree of caution on the outlook for the rest of the year and this appears to have been well founded. Women's clothing, furniture and home accessories all fared reasonably well, highlighting a high level of disparity between sector performances.'
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