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.”

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According to the ONS, on a Year-on-year seasonally adjusted basis:

• Sales by Value (amount spent) increased3% YoY (this growth is primarily due to rising prices)
• Sales by Volume (quantity bought) fell1% 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