UK's total retail sales surge 6.9% in Dec 2022: BRC

UK retail sales increased 6.5 per cent on a like-for-like basis from December 2021, when they had increased by 0.6 per cent. This was above the 3-month average growth of 4.1 per cent and the 12-month average growth of 1.8 per cent, according to figures estimated by the BRC.

Over the three months to December, non-food sales increased 1.5 per cent on a total basis and 1.1 per cent on a like-for-like basis. This is below the 12-month total average growth of 3.2 per cent. For the month of December, non-food was in growth YoY.

Over the three months to December, in-store sales of non-food items increased 5.3 per cent on a total basis and 4.5 per cent on a like-for-like basis since December 2021. This is below the 12-month growth of 25.6 per cent.

Online non-food sales decreased by 3.0 per cent in December, against a decline of 13.9 per cent in December 2021. This is above the 3-month average decline of 3.3 per cent and the 12-month decline of 11.2 per cent. The non-food online penetration rate decreased to 42.3 per cent in December from 44.3 per cent at the same point a year earlier.

Helen Dickinson OBE, chief executive, British Retail Consortium said: “After an exceptionally challenging year which saw inflation climb and consumer confidence plummet, the uptick in spending over Christmas gave many retailers cause for cheer. Many consumers braved the cold snap and the strikes to ensure friends and families got the gifts they wanted, with energy-saving products, warm clothing and boots all selling well. Nonetheless, despite the stronger sales, growth remained below inflation, making December the ninth consecutive month of falling volumes.

“Retail faces further headwinds in 2023. Cost pressures show little immediate signs of waning, and consumer spending will be further constrained by increasing living costs. Retailers are juggling big cost increases while trying to keep prices as low as possible for their customers.”

Paul Martin, UK head of retail, KPMG said: “Consumers shunned big ticket technology purchases in December, opting for energy efficient household appliances and Christmas mainstays of clothes and beauty items. Despite the bad weather, and with postal strikes ongoing, shoppers opted to head for the high street to browse for Christmas presents, with online sales growth continuing to slide across a number of categories.

“With Christmas behind us, retailers are facing a challenging few months as consumers manage rising interest rates and energy prices by reducing their non-essential spending, and industrial action across a number of sectors could also impact sales. The first half of the year will be tough for retail and a case of survival of the fittest, but we expect to see demand increase as 2023 progresses.”

ALCHEMPro News Desk (NB)