UK Retail December 2023 Records Steepest Drop in Sales drop 3.2%
UK retail sales experienced a notable setback in December 2023, with volumes plunging by 3.2%, marking the most significant monthly decline since January 2021 during Covid-19 restrictions. This drop followed a revised uptick of 1.4% in November.
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Non-food stores bore the brunt, witnessing a sharp 3.9% decline post a 2.7% November rise attributed to Black Friday sales. Within this category, department stores faced a substantial 7.1% dip, citing subdued post-Christmas trade and reduced household goods sales.
Other retail sectors, encompassing sports equipment, games, toys, watches, and jewellery, reported a 4.5% fall in sales volumes, primarily attributed to cost-of-living pressures and reduced footfall. Household goods and clothing stores also saw declines of 3.0% and 1.5%, respectively.
Even food stores couldn’t escape the downturn, experiencing a 3.1% fall in sales volumes in December after a modest 1.1% increase in November. Online retailers, representing non-store retailing, faced a 2.1% decrease in sales volumes due to economic factors like inflation.
Automotive fuel sales volumes decreased by 1.9% in December 2023, following a modest 0.8% rise in November. On an annual basis, retail sales volumes in 2023 saw a 2.8% decline, reaching their lowest point since 2018. Quarterly figures also indicated a downturn, with a 0.9% decrease in the three months to December 2023 compared to the previous quarter.
British Retail Consortium insight director Kris Hamer noted that the challenging year for retailers was compounded by Black Friday sales impacting Christmas spending and the high cost of living prompting households to cut back on festive gifting.
Despite these challenges, retailers are optimistic about a potential rebound in 2024 as inflation trends downward and wages slowly rise, fostering consumer confidence and sales volumes.
Source: retail-insight-network