According to new numbers from the Office of National Statistics (ONS), retail sales fell 3.2 per cent in December 2023, after rising 1.4 per cent in November.
The analytics site stated that the reduction was the “largest monthly drop since January 2021,” when pandemic restrictions reduced sales.
In the quarter ended December, sales volumes fell 0.9 per cent , with non-store sales decreasing 3.9 per cent after rising 2.7 per cent in November.
Online merchants’ sales fell 2.1per cent, following a 1.1per cent loss in November.
Annual sales volumes declined 2.8per cent in 2023, reaching the lowest point since 2023.
Speaking on the new numbers, Jacqui Baker, head of retail at RSM UK, described the time as a “shocking end to the Golden Quarter,” with the cost-of-living problem being the major driver of consumers’ reduced spending.
Baker went on to say, “Last year was an obstacle for retailers, and unfortunately, this appears to continue into 2024. Despite improving consumer confidence and real incomes, inflation fell slightly in December, highlighting the economy’s fragility.
“Overall, things are gradually improving, but consumers will likely not appear like having a greater amount in their pockets until the summer. After a difficult year, a further six months of harsh sales may be too much for some retailers,” added Baker.
