High street sales fall as Christmas shoppers go online

Britain's high streets had a disappointing time in the run up to Christmas as buyers took their festive shopping online.

Bricks-and-mortar sales declined for the fourth successive year in 2016 and were down 0.1 per cent year-on-year, according to accountants BDO. Shoppers spent more on homeware but less on clothing and other fashion items.

However, there was good news for retailers - online sales were 19 per cent higher than in December 2015.

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Store sales also rose in the week leading up to Christmas Day, when consumers spent 11.7 per cent more in town centres and retail parks than in the same week last year, helped by 25 December falling on a Sunday, said BDO. Internet orders were also up 51.1 per cent that week.

While online sales do compensate for lower purchasing in the real world, the BBC points out that they still make up only 15 per cent of all retail spending.

BDO adds that some of December's spending may have been brought forward to November, with shoppers tempted by Black Friday discounts.

Nevertheless, this is a "poor result" for retailers, says BDO's head of retail and wholesale Sophie Michael. Many are dependent on the Christmas period to pull them into profit.

She added: "With such a weak base for December 2015, any further decline can only be seen as a poor result for retailers.

"Coming at a critical juncture, this fourth negative December in succession highlights the magnitude of the challenge that lies ahead for 2017, when consumers will more keenly feel the bite of inflation and the weaker pound."