You are here: Home - Household Bills - News -

Not a ‘bumper season’ as retail sales fall in December

0
Written by: Adam Lewis
20/01/2017
While Christmas shoppers spent more in December 2016 than a year earlier, numbers from the Office for National Statistics (ONS) showed a monthly decline in retail sales.

According to the ONS, while retail sale volumes in December 2016 increased by 4.3% compared with December 2015, the actual value spent year-on-year rose by 5.4%.

However, sales volumes dropped 1.9% when compared with November 2016. The ONS said this may be the result of rising prices. Fuel prices in particular rose by 9.7% over the course of the year, contributing to an overall 0.9% rise in average store prices, year-on-year.

Online sales continued to go from strength to strength, with a 21.3% rise in sales, and now accounting for 15.1% of all retail spending (excluding fuel), up from 13.1% in December 2015.

Commenting on the sales figures, Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “The retail sector saw a strong end to 2016, though there are hints that inflation creeping into the system could be starting to put the squeeze on consumers.

“Rising commodity prices and weaker sterling mean that household budgets are going to feel increasingly pinched at the petrol pumps and the food checkouts. Unless there’s a similar pick up in wages, that’s likely to dent consumer demand.”

December’s month-on-month drop in sales was the second consecutive decline and AJ Bell’s investment director Russ Mould said this suggests it may not have quite been the bumper festive season that early January’s trading updates implied.

“A post-referendum bounce in consumer confidence began to ebb at the end of the year as higher oil and therefore petrol and diesel prices began to take effect, making life harder still for retailers as they had to please price sensitive, internet-savvy customers at the same time as dealing with rising input costs that resulted from the weaker pound,” said Mould.

He added: “Retailers will therefore be hoping that consumer confidence and spending picks up again, especially as feasting off the carcass of BHS will only take them so far.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
How investors can profit from a Trump presidency

Nearly three months on from his surprise election victory and countless articles on his potential economic and political policies, the...

Close