Figures released by the Office for National Statistics (ONS) confirm it was a dismal month for many retailers during December.
Sales volumes (quantity bought) last month fell by 0.6% when compared with November; the fifth consecutive month of no growth. And in the three months to December, this figure decreased by 1% when compared with the previous three month period.
As reflected in recent trading updates by the supermarket multiples, sales volumes in food stores fell by 1.3% for the monthly growth rate, which was the largest fall since December 2016. Meanwhile, department stores were down 1.8 % and clothing retailers declined 2%.
Only non-store retailing (+1%) and fuel (+1.6%) saw a month-on-month increase.
Richard Lim, CEO at consultancy Retail Economics said: “These numbers paint a pretty bleak picture for Christmas trading, especially for the food sector. It’s becoming increasingly clear that shoppers are happily shying away from the main grocers in favour of the discounters as they prioritise value over range.
“What’s more, the backdrop of healthier household finances has not benefited the retail industry as consumers remain very cautious in their discretionary spending. Shoppers’ propensity to spend remained weak as uncertainty around Brexit and a weaker economy has severely undermined their confidence.”
