Sales ‘considerably worse than expected’
Small traders have been the worst affected in a general fall in retail sales in December, according to new figures.
According to the Office for National Statistics (ONS), seasonally adjusted retail sales values – excluding fuel – fell by 0.3 per cent, the weakest growth since May 2009.
Volumes, again excluding fuel and seasonally adjusted, rose by just 2.1 per cent, but this is the weakest level for over two years.
The figures are markedly worse than the British Retail Consortium’s (BRC) retail sales monitor for the same period, which suggested total sales rose by one percent. The ONS said the difference may be explained by the performance of small retailers, who are under-represented on BRC studies. They saw sales fall by 3.3 per cent, according to the ONS analysis.
An ONS spokesperson said: “The figures are considerably worse than expected and suggest that despite heavy discounting. Festive cheer was not shared with retailers this Christmas.”
The ONS said weather was likely to have played a role, with the wettest December on record, but the case for a more fundamental shift in consumer spending habits towards leisure, recreation and culture is strengthening.
Food performed relatively well with sales up by 1.2 per cent, the best since June 2014, excluding Easter distortions.
This was also reflected in positive trading updates from the major supermarkets.
Non-food sales fell by 1.8 per cent, the weakest performance since January 2013, excluding Easter distortions.
Online sales rose by 8.2 per cent in December, year-on-year, weaker than expected given the raft of positive financial reporting from online retailers.
