// High levels of discounting in the run up to Christmas successfully boosted December sales, new data reveals
// Instore and online like-for-like sales rose 9.8% in December
Retailers enjoyed a better-than-expected surge in sales during the run up to Christmas despite concerns that early discounting could harm trading.
BDO’s High Street Tracker showed total like-for-like sales both in-store and online jumped 9.8% in December, compared to the same period in 2021.
In-store like-for-likes rocketed 15.5% as a result of increased footfall ahead of the festive period.
Fashion continues to be the highest performing sector in discretionary spending as like-for-likes jumped 16% compared to December 2021.
The lifestyle sector had its best performance since July as like-for-likes grew 8.8% year-on-year.
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Meanwhile, homeware like for likes dropped 4.5% against last year’s in December 7.4% increase.
BDO head of retail and wholesale Sophie Michael said the positive sales figures are still “significantly below” inflation indicating the sales volumes must still be down as the rising cost of living continues to weigh heavily on the appetite for non-essential spending.
“Reports in November highlighted that retailers were holding high levels of inventory going into the final month of the festive season, and an expectation therefore that retailers would be encouraging consumers to purchase through high levels of discounting.
“While this may have helped retailers to reduce stock holdings, it will come at a cost and undoubtedly have eaten into their margins and profitability.
“Coming out of Christmas, retailers may struggle to wean their customers off discounts and return to healthier margins.”
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