UK sales growth dips below average in December

investmentweek.co.uk:

The Christmas period failed to 'make amends for a challenging year of sluggish retail sales growth', as consumers held back spending due to weak confidence.

However, total retail sales for 2023 increased by 3.6% from 2022, the British Retail Consortium found.

UK businesses forecast sizeable drop in inflationary pressures

The biggest increase in the three months to December 2023 was registered for food sales, which rose by 6.8% on a total basis. But food sales were still below the 12-month average of 8.1%.

The BRC noted that for the month of December, food was «in growth year-on-year».

Non-food sales, however, decreased by 1.5% on a total basis in the last quarter of 2023, compared with the 12-month average of -0.1%. The category declined in December as well.

In-store non-food sales fared a similar fate, decreasing by 1.3% on a total basis since December 2022, the BRC found, below the 12-month average of 1.6%.

Similarly, online non-food sales dipped by 0.8% in December, yet the figure was improved from -3% in December 2022. The trade association noted the figure was «shallower» than the three-month and 12-month declines of 1.7% and 2.8%, respectively.

Despite registering a small decrease, the proportion of non-food items bought online in December 2023 rose to 36.8% from 36.2% in December 2022.

Helen Dickinson, CEO of the British Retail Consortium, said the Christmas period failed to «make amends for a challenging year of sluggish retail sales growth», noting consumers have held back spending due to weak confidence.

Similarly, post-Christmas sales were «unsuccessful» in enticing spend in categories such as furniture and homeware, as households remained «cautious about making larger purchases», she noted.

UK executives