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Retail sales suffer end-of-year slump

Retail figures delivered some unexpected gloom from the high street after official statistics confirmed November sales fell for the first time in six months.

Despite recent news about increased footfall in December, the official sales figures for November show a different picture.

The Office for National Statistics (ONS) said a record drop in department store sales and poor performance in the clothing and footwear sector left sales volumes down 0.3% between October and November - the first month-on-month fall since May.

Most analysts had expected sales to rise by 0.6% last month after industry surveys pointed to a better performance in November.

Today’s figures showed retail volumes were up 3.1% year-on-year last month. The ONS also revised figures for October to show a sales rise of 0.6% on the month, up from the 0.4% reported previously.

Sales at non-specialised stores - mainly department stores - fell by the most since the survey began in 1988, down 4.4% between October and November.

Food stores enjoyed a 0.4% rise in monthly sales as shoppers continue to take advantage of lower food price inflation this year.

However, clothing and footwear suffered a 1.8% decline in the lowest result since May amid last month’s milder weather.

The ONS said there was no evidence yet of shoppers rushing to bring forward purchases before the planned New Year reversal of the temporary reduction in VAT.

Retail prices are estimated to have dropped by 0.5% on a year ago.

This was posted in Bdaily's Members' News section by Ruth Mitchell .