Retail sales suffered its worst decline in two years in the lead up to Christmas as more consumers shopped early to help spread the cost amid the cost-of-living crisis
The latest figures from the Office for National Statistics (ONS) show sales volumes slipped 3.2% in December, reversing a 1.4% increase in November, despite retailers reporting a heavier-than-usual promotional market.
December’s drop was the largest monthly fall since January 2021, when Covid lockdown restrictions impacted sales.
British Retail Consortium director of insight Kris Hamer said last month’s fall “capped a difficult year for retailers”.
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Hamer said: “Black Friday sales ate into Christmas spending, while the high cost of living meant some households had to cut back on festive gifting.”
The ONS said food stores “performed very poorly” as volumes fell 3.1% last month due to early Christmas shopping.
Non-food retailers also recorded “sluggish sales”, with volumes dropping 3.9% in December – from the 2.7% increase the month before – as “consumers spent less on Christmas gifts, but had also purchased earlier during Black Friday promotions to help spread the cost”.
Store categories such as sports equipment, games and toys, as well as watches and jewellery stores, were among those to decline by volume.
Clothing stores volumes also fell, dropping 1.5% over the month, as “retailers commented on a tough trading month, alongside the effect of starting their sales period earlier than usual”.
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