Responding to the latest ONS Retail Sales Index
figures, Helen Dickinson, Chief Executive of the British
Retail Consortium, said:
“Volumes fell for the ninth consecutive month as the cost of
living squeeze caused consumers to rein in December spending. The
high cost of household bills, particularly for energy, and rising
food inflation, made for a difficult Christmas backdrop with
falling consumer confidence. Nonetheless, increased discounting
helped boost gift giving, with stronger sales growth for clothing
and furniture.
“It is clear that inflation took its toll on the whole of 2022,
with retail volumes falling 3.4% over the year, the biggest drop
on record*. Many of the cost pressures bearing down on retailers
and their customers remain in 2023, with high energy costs, the
war in Ukraine, and domestic labour shortages all taking their
toll. However, BRC modelling suggests the situation will improve
in the second half of the year.”
-ENDS-
According to the ONS, on a
Year-on-year seasonally adjusted basis:
-
Sales by Value (amount spent) increased
3.3% YoY (this growth is primarily due to rising prices)
-
Sales by Volume (quantity bought) fell
6.1% YoY
*For 2022 as a whole, sales by value rose 4.8%,
while volumes fell 3.4%. These annual records
began in 1989.
GfK Consumer Confidence fell
slightly from -42 to -45
