UK ends 2023 with weak sales growth - BRC

(Alliance News) - UK retail sales edged slightly higher in December, numbers from the British Retail Consortium showed Tuesday.

According to the latest BRC-KPMG tracker, for 2023, retail sales increased by 3.6% from 2022. Annually, food growth was up 8.1% and non-food declined by 0.1%.

UK total retail sales increased by 1.7% in December, against growth of 6.9% in December a year earlier. This was below the 3-month average growth of 2.3% and below the 12-month average growth of 3.6%.

The period covers the five weeks November 26 to December 30.

BRC Chief Executive Helen Dickinson commented: "The festive period failed to make amends for a challenging year of sluggish retail sales growth, as weak consumer confidence continued to hold back spending. The post-Christmas sales were unsuccessful in enticing spend in areas such as furniture and homeware, with households remaining cautious about making larger purchases. Sales saw a slight uptick in the week leading up to Christmas as consumers scrambled to purchase last minute gifts, particularly online, due to the wet weather. In gifting, beauty products were the standout performer, and toys and gaming also sold well.

"2024 looks to be another challenging year for retailers and their customers, and spending will continue to be constrained by high living costs. Retailers will also have to juggle various cost pressures, including the rise to business rates this April. This will be compounded by other emerging issues, such as the disruption to shipments from the Far East via the Red Sea. Political parties must consider this backdrop when they set out their plans for retail in manifestos so they can help support the industry to grow, invest, and serve customers."

By Sophie Rose, Alliance News senior reporter

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