Festive retail sales slump

A dire Christmas on UK high streets was laid bare yesterday, with official figures showing the worst December sales performance since 2010.

Retail sales fell 1.5% month-on-month, according to the Office for National Statistics (ONS), a much heavier decline than economists had forecast.

The figures also marked the biggest month-on-month fall since June 2016, when the UK voted to quit the European Union.

Annual growth fell to 1.9% for the whole of 2017, well below expectations and the weakest rate of growth since 2013.

Consumer confidence has tanked since

“The longer term picture is one of slowing growth”

the EU referendum as Brexit-fuelled inflation erodes spending power and jacks up prices for shoppers already struggling with stunted wage growth.

Black Friday, which falls in November, has also meant people are doing Christmas shopping early, denting December sales figures.

ONS senior statistician Rhian Murphy said: “Consumers continue to move Christmas purchases earlier, with higher spending in November and lower spending in December than seen in previous years.

“However, the longerterm picture is one of slowing growth, with increased prices squeezing people’s spending.”

The likes of Carpetright, Mothercare and Debenhams have all issued profit warnings in January after Christmas trading fell short of expectations.

While economists expect inflation to cool this year from its current 3%, and wage growth to pick up, political uncertainty is likely to mean the retail sector remains under intense pressure.