NEW Year sales failed to give the hoped-for boost to shops hit by a downturn in consumer spending.

According to figures issued by the CBI, the business group, sales grew a little but by not enough to relieve retail gloom.

The year has already started badly for shoe retailers, with established high street names Dolcis and Stead & Simpson both going into administration.

In its latest Distributive Trades Survey, 39 per cent of respondents said year-on-year sales volumes rose in the first half of January, while 34 per cent said they were down.

Malcolm Hyde, CBI South East regional director based in Sevenoaks, said: "The January sales were a little flat this year, and were weaker than the lacklustre lead-up to Christmas.

"While sales of groceries and household essentials went quite well, shoppers are watching their wallets, and that can be seen in the big drop in sales of big-ticket items like TVs and washing machines.

"However, this survey and recent CBI manufacturing data show that, while market turbulence is undoubtedly affecting consumer confidence, the economy as a whole is nonetheless bearing up and continuing to grow, if more slowly.

"Overall retail sales were still better than expected this month, and the high street does predict a slight improvement in February."

A majority of retailers expect sales to grow in February, although at a slower rate than in the second half of last year. The CBI reported that trading conditions varied from sector to sector.

Surprisingly, in view of the difficulties faced by Dolcis and Stead & Simpson, it says footwear sales increased year-on-year. Leather, furniture and carpets all sold well, although there was a dip in December.

Sales growth held up in the grocery sector. Sales of durable household products, clothing, hardware, china, DIY and cars all fell.