UK shops suffer worst Christmas in 20 years

Retailers in the United Kingdom suffered their worst Christmas for more than 20 years as sales volumes fell 1 per cent in December…

Retailers in the United Kingdom suffered their worst Christmas for more than 20 years as sales volumes fell 1 per cent in December.

Clothing retailers and non-specialist stores were the worst hit, with only Internet retailers showing any significant growth, according to the British Office for National Statistics (ONS).

The last time retailers endured a tougher Christmas was in 1981 when seasonally-adjusted sales volumes plunged 1.7 per cent compared with the previous month.

The figures are likely to confirm the worst fears of economists who have seen high street giants such as Marks & Spencer and Next guide the market towards lower annual profit.

READ MORE

An earlier survey by the British Retail Consortium found that retailers had experienced their toughest Christmas for a decade, although a contrasting picture was painted by the CBI.

The poor sales data are likely to spark fresh calls for the Bank of England to ease the pressure on household budgets by cutting interest rates.

The ONS said sales over the Christmas period - which covers November 28th to January 1st - were "unusually low".

The value of retail sales in December was estimated at £30.8 billion, up to 2.9 per cent on a year ago. Total retail sales rose by 0.3 per cent in the three months between October and December against the previous quarter - the lowest rate of growth for six years.