// Retail sales volumes dropped for the ninth consecutive month as shoppers continue to rein in spending
// Volumes shrunk 6.1% in December year on year as sales surged 3.3%, data from ONS reveals
Retail sales volumes have fallen on last year for the ninth consecutive month as shoppers cut back on spending amid the cost-of-living crisis.
Sales volumes excluding fuel shrunk 6.1% year on year in December, however price rises helped drive values up 3.3%, according to the ONS.
The latest figures reveal the largest divergence between retail sales and volumes since May 2021 reflecting skyrocketing prices and consumers purchasing less due to affordability concerns.
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Month on month, sales values were down 1% and volume fell 1.1%.
Non-food store sales volumes fell 2.1% in December, however, household goods stores rose 1.5% and clothing stores sales volumes increased 1%.
Food store sales volumes fell 0.3% in December from a 1% uptick in November. suggesting shoppers stocked up early for Christmas.
December’s Royal Mail strikes saw the proportion of online sales fall to 25.4% last month from 25.9% in November.
British Retail Consortium (BRC) chief executive Helen Dickinson said: “Volumes fell for the ninth consecutive month as the cost of living squeeze caused consumers to rein in December spending.
“The high cost of household bills, particularly for energy, and rising food inflation, made for a difficult Christmas backdrop with falling consumer confidence.
“Nonetheless, increased discounting helped boost gift giving, with stronger sales growth for clothing and furniture.”
Across 2022, sales volumes fell 3.4%, the biggest drop on record.
Dickinson said: “Many of the cost pressures bearing down on retailers and their customers remain in 2023, with high energy costs, the war in Ukraine, and domestic labour shortages all taking their toll.”
Earlier this month, BRC said it expects retail sales to be “challenging” for the first half of the year but will improve in the second half.
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