Unexpected Drop Hits the Holiday Shopping Scene
In a twist that left many retailers clutching their wallets, December sales slipped 0.3% according to the Office for National Statistics (ONS). The drop came as a surprise, especially since the season’s shoppers had traditionally piled onto their carts before the holidays.
Food Fiasco
Food retailers were the biggest disappointment, with sales slipping a whopping 1.9%—the lowest drop in over a decade. Supermarkets were hit hardest, as customers seemed to skip the aisles that usually buzz with pre‑Christmas feasting.
- Butchers, tobacconists and liquor stores also saw dips in their numbers.
Bright Spots Amid the Blues
Not all news is gloomy. Clothing and shoe shops managed to turn a profit, showing a 4.4% rise. Likewise, department and household goods stores performed robustly, buoyed by tasty Christmas sales.
What the Stats Said
ONS senior statistician Hannah Finselbach offered context: “Retail sales fell in December following last month’s slight increase. This was driven by a very poor month for food sales, which sank to their lowest level since 2013, with supermarkets particularly affected. It was a better month for clothing shops and household goods stores, where retailers reported strong Christmas trading.” She added, “With the timing of Black Friday falling within these latest data, our figures when not adjusted for seasonal spending show overall retail sales grew more strongly than in recent Decembers.“
Industry Voices The Reality
British Retail Consortium’s Kris Hamer weighed in, saying: “Retail sales picked up in December, but this unfortunately did not offset the shaky start to the ‘Golden Quarter’. Non‑food, electricals, beauty and books made for popular presents. Meanwhile, sales of furniture and other large‑ticket items were hard hit as families continued to think twice before making larger purchases, and clothing and footwear sales remained muted.“
He warned: “While retailers welcome this boost to sales, it will barely touch the sides of the £7bn in new costs from the Budget facing the industry in 2025. Higher employer national insurance contributions, higher National Living Wage, and a new packaging levy will heap pressure on an industry that is already paying more than its fair share of tax. With retailers doing all they can to absorb existing costs, two thirds of CFOs report they are left with little choice but to increase prices, and reduce investment in jobs and shops. To mitigate this, Government must ensure that its proposed business rates reform does not result in any shop paying higher rates than they already do.”“
Takeaway
The December slump reminds us that holiday sales are far from guaranteed. While some sectors rode the festive wave, others found themselves on a nosedive. And with a looming budget dump pressing on retailers, the stretch to keep prices stable and keep jobs alive is tighter than ever.
So, next time you buy a sweater or a holiday gadget, remember: retailers are juggling numbers, not just Christmas lights!
