High street stores recorded a 0.5 per cent decline in sales compared with the same month last year, while online sales slipped by 0.6 per cent, indicating broad-based weakness across channels, BDO said in a press release.
The poor outcome this month continued due to disappointing performances in October and November, resulting in a significantly weaker ‘Golden Quarter’ for retailers compared with the previous year. Despite expectations that festive spending would recover earlier losses, sales volumes continued to contract.
“After a challenging year, retailers were very much hoping for a strong end to 2025. Instead, we’ve seen a downward trend since early in the year and the worst monthly performance since November 2024,” said Sophie Michael, head of retail and wholesale at BDO.
Looking ahead, BDO warned that retailers face mounting pressures in 2026, including excess stock levels and limited scope for heavy discounting without eroding already tight margins. Rising cost bases announced in previous budgets are also expected to constrain investment in new product lines.
While the outlook remains challenging, BDO noted that the sector has historically shown resilience, with retailers continuing to adapt in order to attract cautious consumers in the year ahead.
ALCHEMPro News Desk (SG)
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