House prices buck trend:
RETAIL SALES fell in December as a last-minute surge in trading and discounting failed to save embattled high street chains from their worst year on record.
Store sales dropped 1.9 per cent last month year-on-year, the sixth successive December to record negative sales growth, according to the high street sales tracker from accountants BDO.
Last year was also the worst on record for like-for-like sales, with 2018 recording 11 consecutive months of negative sales growth since January.
Sophie Michael, the head of retail and wholesale at BDO, said: “As retailers suffered the worst year for well over a decade for instore sales, it’s clear that consumer confidence is low.
“Shoppers have exercised extreme caution or shopped strategically online, seeking out discounts rather than visiting bricks-and-mortar stores or making impulse purchases.
“The shopping spree retailers were hoping for in December didn’t happen, with only heavy discounting convincing consumers to part with their pounds.”
Fashion and lifestyle retailers were the poor performers, with sales plunging two per cent and 3.9 per cent respectively in December.
However, in-store homeware sales grew 9.3 per cent and online sales increased by 11.9 per cent as consumers opted to do lastminute purchases online.
Accountants from BDO said the expected last-minute surge in shopping in the run-up to Christmas failed to materialise. The last full week before Christmas, which included the so-called “Frenzied Friday” and “Super Saturday”, saw sales drop 4.9 per cent.
Meanwhile, the final week of THE DECLINE of the high street’s retail sector has become one of the biggest domestic issues for the Government as consumers switch their attention to purchasing online.
Concerns are mounting that town centres across the country are being irreversibly eroded amid the cheaper prices and convenience which the internet offers.
Chancellor Philip Hammond announced in October’s Budget that high streets were in line for a £1.5bn boost to give nearly 500,000 small retailers relief from business rates.
The Yorkshire Post launched its Love Your High Street campaign last year to highlight the plight of retailers.
December, which included Boxing Day, saw discounting provide a significant boost to in-store sales, increasing seven per cent, but from a 3.8 per cent decline in the same week last year.
It has been a tough year for the high street with the collapse of Toys R Us and Maplin and HMV entering administration. Other retailers have sought rescue deals and shuttered stores as they battle low consumer confidence, high costs and the shift to online shopping.
Ms Michael added that there is “a huge amount of nervousness in the market and consumer confidence – a key driver of spend – is brittle”.
She said: “Having suffered the sixth successive December of negative in-store sales growth, the UK high street is starting the year on shaky ground. Unfortunately, 2019 is set to be another challenging year for retail.”