Responding to the latest ONS Retail Sales Index
figures, which showed sales up 4.9% by value, and up 3.1% by
volume, Harvir Dhillon, Economist at the British Retail
Consortium, said:
“ONS retail sales figures show a fragmented market over
Christmas, with larger retailers seeing sales drop 1.6% while
smaller independents grew 6.4%. Food sales remained relatively
stable, but this was owing to rising food inflation rather than
increased sales. Typically popular Christmas gifting categories
such as electricals, books and health and beauty saw sales drop
as people tightened their purse strings. Shoppers are continuing
to hold back spending as they manage the rising cost of living.
“This performance capped off a difficult year, where significant
cost pressures have been weighing down on the industry. If these
costs continue to climb, whether through higher business rates
bills or higher costs of employment, then it will be ordinary
workers who are most affected as more entry-level and flexible
jobs disappear. This means more people tightening their belts,
and less spending in the economy in future.”
-ENDS-
Notes:
According to the ONS, on a
Year-on-year seasonally adjusted basis:
- Sales by Value (amount spent)
increased 4.9% YoY
- Sales by Volume (quantity bought) increased
3.1% YoY
