Surprise flop in retail sales in December after ‘poor’ month for supermarkets
The volume of retail sales, which measures the quantity bought, fell by 0.3% in December, the Office for National Statistics said.
UK retail sales unexpectedly declined last month in a blow to the sector during the all-important festive shopping season, new official figures show.
The volume of retail sales – which measures the quantity bought – fell by 0.3% in December, the Office for National Statistics said.
It follows a 0.1% increase in November, revised down from a previous estimate of a 0.2% rise.
Analysts had been expecting sales to rise by 0.4% in December, with shoppers stocking up ahead of Christmas.
A weak month for supermarkets helped drag on overall volumes, with food store sales falling by 1.9% to hit the lowest level in more than a decade.
Specialist food stores like butchers and bakers, and alcohol and tobacco shops – including vaping shops, also saw sales volume decline last month.
On the other hand, it was a stronger month for clothes and shoe shops which saw sales surge by 4.4% in December, reflecting a boom in Christmas shopping amid heightened sales activity over the festive season.
Department stores and household goods stores also rose over the month, which retailers attributed to stronger Christmas sales.
ONS senior statistician Hannah Finselbach said: “Retail sales fell in December following last month’s slight increase.
“This was driven by a very poor month for food sales, which sank to their lowest level since 2013, with supermarkets particularly affected.
“It was a better month for clothing shops and household goods stores, where retailers reported strong Christmas trading.
“With the timing of Black Friday falling within these latest data, our figures when not adjusted for seasonal spending show overall retail sales grew more strongly than in recent Decembers.”
Erin Brookes, European retail and consumer lead at Alvarez & Marsal, said: “Sales disappointed in December after five months of positive growth, signalling that retailers are already being hit by low consumer confidence on spending.
“Despite working hard on both in-store and online shopping experiences and offering some enticing deals, retailers failed to drive spending in the crucial ‘golden quarter’, setting them up for a difficult start to 2025.
“As businesses grapple with rising expenses, many are expected to prioritise cost efficiencies, which could lead to price increases across the sector this year.”
Kris Hamer, director of insight at the British Retail Consortium, said: “In non-food, electricals, beauty and books made for popular presents.
“Meanwhile, sales of furniture and other large-ticket items were hard hit as families continued to think twice before making larger purchases, and clothing and footwear sales remained muted.”
He added that retailers were set to come under pressure from new costs from the autumn Budget facing the industry in 2025.
“Higher employer national insurance contributions, higher national living wage, and a new packaging levy will heap pressure on an industry that is already paying more than its fair share of tax,” he said.
