Despite being the busiest month for holiday shopping, the UK’s Office for National Statistics reported on Friday that December retail sales volume decreased. It also mentioned that there was a very minor volume increase in clothing sales.
Even if the shocking decline in UK retail sales was only 1 per cent month-over-month in the last month of the so-called Golden Quarter, the news was grim. It also highlighted how challenging the retail industry is, especially following a 0.5 per cent decline in November despite Black Friday.
As the percentage of internet sales decreased from 25.9 per cent in November to 25.4 per cent in December 2022, physical stores obviously made a comeback. Anecdotal research suggests that Royal Mail strikes encouraged consumers to shop in stores.
Cande Cooper, UK Retail Consulting Lead at Deloitte, said: “December’s festive period marks two consecutive months of retail sales decline in the Golden Quarter. The outlook for the next 12 months remains difficult for both consumers and retailers.”
Sales volumes in clothing stores increased by 1 per cent in December, while the ONS omitted a value figure.
Analysts believe that even if the clothing industry is reasonably strong compared to other industries, retailer profits are not going to boom.
“Retailers are navigating an uncertain environment as they continue to manage costs down while simultaneously trying to grow revenues. Those who continue to offer good value and innovative products, coupled with quality customer experience, will be most likely to succeed,” said Cooper.
