British retail sales at the end of last year were significantly lower than expected. In December, sales fell by 3.2 percent month-on-month, as the ONS statistics office announced on Friday in London. This is the sharpest decline since the beginning of 2021, when the corona crisis put a strain on retail with lockdowns.
Analysts had on average expected a decline, but had only expected a slight decline of 0.5 percent for December. The decline in sales followed an increase in November of a revised 1.4 percent (previously 1.3).
Compared to the same month last year, British retail sales fell by 2.4 percent in December. In November it had risen by 0.2 percent. Retail sales fell across all major sectors. For December, the statistics office reported a decline in food business of 3.1 percent month-on-month. Fuel sales also fell, but less sharply by 1.9 percent.
A mix of wet weather, high interest rates and a weak labor market held back consumers during the crucial holiday shopping season. In November, early discount campaigns on “Black Friday” and help with living expenses boosted sales.
For the full year 2023, the statistics office reported a decline in retail sales of 2.8 percent. It is the second year in a row that overall sales have fallen, to their lowest level since 2018. (dpa)