
The month-on-month drop followed a rise of 0.1% in November. Compared to December 2023, sales volumes also rose by 3.6%, according to the Office for National Statistics (ONS).
There was also a 0.8% dip in the three months to December compared to the previous quarter (July to September). The drop in sales was heavily influenced by food store sales falling by 1.9% on the month – its lowest level for over 10 years.
Despite one in five Brits overspending over Christmas, supermarkets bore the brunt of the decline in spending, but specialist food stores like butchers and bakers also declined. This spread to alcohol, tobacco and vape shops too.
While food sales faltered, non-food stores like department stores and clothing retailers had a month-on-month rise of 1.1%. Clothes shops contributed the biggest boost to retail sales, with a 4.4% rise in December after a 3.3% drop in November.
The ONS figures for December mark a disappointing end to a week where inflation took a surprising drop to 2.5% and GDP grew by 0.1%.

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‘Shaky start to the ‘Golden Quarter”
Kris Hamer, director of insight at the British Retail Consortium (BRC), said: “Retail sales picked up in December, but this unfortunately did not offset the shaky start to the ‘Golden Quarter’. In 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.
“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, the Government must ensure that its proposed business rates reform does not result in any shop paying higher rates than they already do.”
Danni Hewson, head of financial analysis at AJ Bell, attributed the floundering sales on the aisles to families saving for Christmas earlier in the year.
Hewson said: “Worried about their budgets, many households started squirrelling away festive treats months before the big day, and with confidence reeling after October’s Budget, some consumers seem to have cut back on food spend as sales fell to their lowest levels since 2013.”
She added: “Whilst inflation happily fell in December, it is expected to climb again over the next few months, which will scrape away at the little bit of extra cash people may have in their pockets thanks to above-inflation pay rises.
“With the Chancellor under mounting pressure to deliver growth, the news that retail sales fell in December of all months is at the very least unwelcome.
“The ‘Golden Quarter’ isn’t just a phrase trotted out by analysts, it’s a crucial period of time when retailers make enough money to see them through those sluggish early months of the year when people are paying off their credit card bills and thinking ahead to summer sun.
“With sales disappointing and confidence scraped raw, there will be concern that some retailers won’t have a cushion to fall back on and will be vulnerable.”