UK retail earnings took a downturn in December as supermarkets sales slumped by 1.9%
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UK retail sales took a surprising downturn last month, dealing a setback to retailers hoping for strong festive season earnings, according to newly released figures from the Office for National Statistics. The volume of retail sales dropped by 0.3% in December, a stark contrast to the modest 0.1% rise in November, which has been revised down from an initially estimated 0.2%. Market experts had anticipated a 0.4% increase in December, as consumers typically stock up for Christmas.
A significant slump in supermarket sales, with a decline of 1.9%, contributed heavily to the overall dip, marking the lowest level for food store sales in over ten years. While specialist food shops and retailers dealing in alcohol and tobacco, including vaping outlets, witnessed diminished sales volumes, the fashion sector enjoyed a spike as clothing and footwear sales jumped by 4.4%, buoyed by holiday shopping and increased promotions.
Department stores and home goods vendors also reported gains, benefiting from a surge in Christmas purchases. ONS senior statistician Hannah Finselbach commented on the situation: "Retail sales fell in December following last month’s slight increase.".
She said: "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.
