'Dazzling' Christmas shop sales in London are record

The British Retail Consortium said London sales jumped 12 per cent in December, the best performance since it started taking figures in 2002.

It followed a dismal festive season in 2008 when trade was hit by the deepening financial crisis in the wake of the collapse of Lehman Brothers.

The weak pound helped to bolster the figures with visitors from Europe, China and the Middle East flocking to the capital.

The surge in sales compared with a rise of just 4.2 per cent in the rest of Britain, further evidence that the capital is dragging the country out of recession. Stephen Robertson, director general of the BRC, said: "This is a dazzling performance, London's best December sales growth since this survey began in 2002.

"The result is boosted because the comparison is with terrible figures a year ago but this is outstanding growth by any interpretation.

"Generally customers were a lot more positive than the year before, so more willing and able to spend. A big Saturday Boxing Day start to many post-Christmas sales produced a strong extra day's trading for lots of retailers and the weak pound tempted overseas shoppers to London.

"Wintry weather kept people away from shops on some days but when they did go they spent more. But, given the prospects for jobs, wages and taxes in 2010, don't assume customers will go on spending like this."

Food sales were particularly strong, helped by rising prices, and clothes and shoes sold well thanks to the wintry weather. Beauty products and jewellery were also popular.

December sales at John Lewis jumped 19 per cent in Oxford Street and 16 per cent at Peter Jones in Sloane Square. "Christmas was really good for the whole business and London did particularly well," said Nat Wakely, director of selling at John Lewis. The firm has yet to pass on the higher rate of VAT — it returned to 17.5 per cent on 1 January after the temporary cut to 15 per cent — and London sales have held up so far this month.

Sales last week were up nine per cent at John Lewis and 15 per cent at Peter Jones.

Helen Dickinson, head of retail at KPMG, said: "Although the rest of the country saw a slow build-up to Christmas trade in November, London bucked this trend. These are great figures and Christmas provided an opportunity for department stores to outperform."