Surprise flop in retail sales in December after ‘poor’ month for supermarkets
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.
Fall
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, offsetting a rise in sales for clothing and footwear retailers.
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.
Timing
“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.”
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People are definitely short of cash, well most of us anyway. People may also be wising up to the fact that a lot of the junk in shops is not needed in such volumes especially when it ain’t cheap no more. It’s about time demand was sensitive to price rises.