Christmas sales plummet as cost of living crisis and postal strikes bite

20 January 2023, 10:36

Christmas sales plummeted as Brits found their pockets squeezed by the cost of living crisis and feared deliveries would be disrupted by strikes.

Sales collapsed by 5.8% compared to December 2021, the biggest fall for the month since records started in 1997.

The Office for National Statistics (ONS) estimates that retail sales volumes dropped by 1% in December, the second month it declined, dashing hopes that shops would see their first good Christmas since Covid broke out.

Heather Bovill, the Office for National Statistics' deputy director for surveys and economic indicators, said: "Retail sales dropped again in December with feedback suggesting consumers cut back on their Christmas shopping due to affordability concerns.

"After last month's boost as shoppers stocked up early, food sales fell back again in December with supermarkets reporting this was due to increased food prices and the rising cost of living.

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"Online sales dipped with feedback indicating postal strikes were leading people towards purchasing more goods instore."

Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: "Many of the cost pressures bearing down on retailers and their customers remain in 2023, with high energy costs, the war in Ukraine, and domestic labour shortages all taking their toll.

"However, BRC modelling suggests the situation will improve in the second half of the year."

Food shops fared better – seeing just a 0.3% drops in sales compared to the 2.1% seen by non-food shops in December.

The proportion of online sales fell to 25.4% in the month, from 25.9% the month prior.