UK Retail Sales Log Faster Growth On Higher Prices: BRC

RTTNews | 910 days ago

(RTTNews) - UK retail sales increased notably at the end of the year, reflecting higher prices and strong Christmas shopping, data released by the British Retail Consortium and accountancy firm KPMG revealed Tuesday. Like-for-like sales grew 6.9 percent on a yearly basis in December, faster than the 4.2 percent rise in November.

"Despite the stronger sales, growth remained below inflation, making December the ninth consecutive month of falling volumes," BRC Chief Executive Helen Dickinson said.

Dickinson said retail faces further headwinds in 2023 as cost pressures show little immediate signs of waning and consumer spending will be further constrained by higher living costs.

Sales growth in December is largely due to goods costing more and masks the fact that the volume of goods that people are buying is significantly down on this time last year, said Paul Martin, UK head of retail at KPMG.

Elsewhere, a report from market researcher NielsenIQ said weak confidence regarding personal finances and falling disposable income of households will dampen demand. Food retail growth for this year is seen around 5 percent.

Data published earlier this month by market researcher Kantar showed that UK grocery sales grew 9.4 percent annually in December, which was the fastest pace since February 2021.

Although sales values rose significantly, inflation was the real driving factor supporting the growth rather than increased purchasing.

Grocery price inflation remained elevated at 14.4 percent, but was slightly lower than the 14.6 percent in November.

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UK Retail Sales Log Faster Growth On Higher Prices: BRC