‘Worst Christmas in a decade’ for high-street shops
Newly released figures show like-for-like sales fell by 0.7% from previous December
Retail sales in the UK showed no year-on-year growth at all over December, in what has been labelled the worst Christmas for the British high street since 2008.
According to a report by the British Retail Consortium (BRC) and auditing firm KPMG, total retail sales were flat during the festive season, while like-for-like sales fell by 0.7% from December 2017, as shoppers “reined in spending and shifted to budget retailers”, The Independent reports.
BRC chief executive Helen Dickinson said that despite considerable price cuts in stores, sales figures show that consumers “chose not to splash out this Christmas”.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
“The worst December sales performance in ten years means a challenging start to 2019 for retailers, with business rates set to rise once again this year, and the threat of a no-deal Brexit looming ever larger,” she said.
“Retailers are facing up to this challenge but are having to wrestle with mounting costs from a succession of government policies - from the apprenticeship levy, to higher wage costs, to rising business rates.”
There was some good news, however. Paul Martin, UK head of retail at KPMG, said that while retailers experienced “little festive cheer this year”, the food sector ”did provide a glimmer of hope, being among the few categories to notice an uptick” in spending.
But in a continuation of the doom and gloom, a separate study published by Barclaycard found that consumer spending grew by just 1.8% year-on-year in December - the lowest rate of growth seen since March 2016, the BBC reports.
Barclaycard director Esme Harwood said this modest growth “represents a decline in real terms”, adding that consumers “remain cautious amidst ongoing economic uncertainty”.
High-street retailers are still reeling from a disastrous 2018. A total of 2,692 shops disappeared from Britain’s top 500 high streets in the first six months of the year - a rate of around 14 a day.
Richard Lim, of consultancy Retail Economics, said the BRC’s figures “are worse than we’d feared and hammer home the message that all is not well on our high streets”, reports HuffPost.
Lim blamed “the ongoing shift towards online shopping” and an “extraordinary level of discounting in the run-up to Christmas” for eroding profit margins over the traditionally lucrative festive period.
“Inevitably, this will have left many retailers in a more precarious financial situation heading into 2019,” he said.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Geoff Capes obituary: shot-putter who became the World’s Strongest Man
In the Spotlight The 'mighty figure' was a two-time Commonwealth Champion and world-record holder
By The Week UK Published
-
Israel attacks Iran: a 'limited' retaliation
Talking Point Iran's humiliated leaders must decide how to respond to Netanyahu's measured strike
By The Week UK Published
-
Crossword: November 2, 2024
The Week's daily crossword puzzle
By The Week Staff Published
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right now
Speed Read Britain is currently in the grip of an ‘employment crisis’
By The Week Staff Published
-
Will the energy war hurt Europe more than Russia?
Speed Read European Commission proposes a total ban on Russian oil
By The Week Staff Published
-
Will Elon Musk manage to take over Twitter?
Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
By The Week Staff Last updated
-
Shoppers urged not to buy into dodgy Black Friday deals
Speed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
By The Week Staff Published
-
Ryanair: readying for departure from London
Speed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
By The Week Staff Published
-
Out of fashion: Asos ‘curse’ has struck again
Speed Read Share price tumbles following the departure of CEO Nick Beighton
By The Week Staff Published
-
Universal Music’s blockbuster listing: don’t stop me now…
Speed Read Investors are betting heavily that the ‘boom in music streaming’, which has transformed Universal’s fortunes, ‘still has a long way to go’
By The Week Staff Published
-
EasyJet/Wizz: battle for air supremacy
Speed Read ‘Wizz’s cheeky takeover bid will have come as a blow to the corporate ego’
By The Week Staff Published