Fashion slow to get festive feeling

BRITAIN'S clothing retailers suffered their sharpest sales fall for 20 years in the run-up to Christmas, shock figures showed today.

While the High Street as a whole enjoyed a return to form in December, shoppers turned their back on fashion to splash out on booze, food and DVDs, according to CBI data.

Overall, 54% of retailers saw sales rise on the year before with 21% witnessing a fall. The balance of plus 33% compares with minus 3% in December 2002 and pushes underlying growth to its highest for 18 months.

But the balance in the clothing sector was minus 39%, the largest in the 20-year history of the CBI's retail survey, raising fears that dozens of stores have missed out on the biggest sales period of the year.

The survey covers sales up to 17 December. Next today said it was saved by an 'exceptionally strong' final week before Christmas.

But Marks & Spencer is widely expected to disappoint when it reports its festive figures next Wednesday. Matalan and Austin Reed have already put out warnings. Analysts said the clothing sector had suffered a hangover from the milder weather at the start of the month.

Richard Ratner at Seymour Pierce, said: 'This confirms there were winners and losers. But we are hearing that clothing sales are up enormously since Christmas.'

Earlier today, the Chartered Institute of Purchasing and Supply showed the services sector enjoyed significant growth in December with its business activity index hitting 58.5.

The pound soared to an 11-year high $1.8210 today as investors continued to sell the US currency. Gold hit a 15-year best $427.50.

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