Little Xmas cheer as High Street slumps to 3-year low

THE high street faces a ‘long, hard winter’ after posting its worst run for three years just as shops enter the crucial Christmas period, analysts warned yesterday.

Households are reining in their spending in the face of political uncertainty, Office for National Statistics (ONS) figures suggest.

Total sales fell 0.1 per cent in October, the third straight month of decline, making the last three months the worst for retail since late 2016.

There are also concerns consumer spending may no longer provide support for the slowing UK economy, which this week only narrowly avoided recession.

Shops selling clothing and household goods suffered most, but all main sectors saw falling sales apart from food stores.

Clothing retailers suffered during the warm autumn as shoppers put off buying items such as boots and coats.

But spending failed to pick up even as temperatures fell, suggesting shoppers are finally responding to concerns over the state of the economy.

Chains have been forced to offer deep discounts, putting yet more pressure on profits.

At the same time shoppers are continuing to move online, with web sales as a proportion of all retailing increasing to 19.2 per cent.

Some analysts have said the December 12 General Election is another headache for retailers.

The malaise for bricks-andmortar sellers has led to 30 high street names going bust or being put up for sale this year, including Mothercare, Karen Millen and Jack Wills.

Last month, the Scottish Retail Consortium (SRC) said it estimated that five shops are shutting every week on average in Scotland.

In the five years to 2016, the number of shops north of the Border fell 4.4 per cent to 22,434. The SRC warned changes to the way business rates are calculated means retailers face paying out an extra £12million from April.

SRC head of policy Ewan MacDonald-Russell said at the time: ‘The costs of operating from property and employing workers are rising. It is putting enormous pressure on the industry, forcing some to make difficult decisions.’

The likes of Marks & Spencer and John Lewis have seen sales fall 1.7 per cent in three months, compared to 2018.

Ed Monk, of Fidelity International, said: ‘This morning’s retail sales figures suggest it could be a long, hard winter.’

This newspaper’s long-running Save Our High Streets campaign calls for a level playing field between traditional shops and their online rivals.