Retail sales fall in December as shoppers cut back on spending

The Office of National Statistics released new figures showing retail sales fell by 1% in December, as shoppers cut back on spending.

The ONS said that retailers told them “consumers are cutting back on spending because of increased prices and affordability concerns.” 

There was a sharp drop at non-food stores, but food stores also reported a fall in sales. 

The ONS also revised down figures for November. 

It said that sales volumes fell by 0.5% instead of the original estimate of a 0.4% drop. 

The rate of inflation remains close to a 40-year high despite slowing slightly in December. 

The amount of goods and food bought fell in December but rising prices mean a large number of retailers still reported strong sales figures based on value over the Christmas period. 

The ONS said the drop in food sales during December just reinforced the view that people stocked up on food earlier than usual. 

“After last month’s boost as shoppers stocked up early, food sales fell back again in December with supermarkets reporting this was due to increase food prices and the rising cost of living,” said Heather Bovill, deputy director for surveys and economic indicators at the ONS.

Online sales also fell between November and December, Ms Bovill said feedback from retailers indicated “postal strikes were leading people towards purchasing more goods instore”.