UK retail sales edge higher pre-Christmas as online spending jumps
UK retail sales returned to modest growth in the week before Christmas, driven by a sharp rebound in online spending, although in-store sales and footfall remained under pressure, data from BDO’s High Street sales tracker showed.
Total like-for-like sales rose 1.0% in the week ended December 21, reversing two consecutive weeks of decline.
However, the increase came against 2.6% growth in the same week last year, highlighting fragility in consumer demand.
Non-store sales provided the main support, jumping 7.9% year-on-year, compared to 32% growth a year earlier. By contrast, store-based sales fell 4.5%, extending a prolonged run of negative performance on the high street, but compared to a 5.5% decline last year.
Fashion sales showed tentative signs of stabilisation. Total fashion like-for-like sales edged up 0.4%, marking the category’s first positive week after three consecutive declines. Online fashion sales rose 3.5%, while store fashion sales fell 3.6%, underlining the ongoing shift away from physical stores.
Homewares continued to outperform, with total like-for-like sales climbing 10%, the seventh consecutive week of growth for the category. Both store and non-store channels contributed, as store homewares sales rose 8.6% and online sales increased 7.1%.
Lifestyle sales also returned to growth, with total like-for-like sales up 0.4% after two negative weeks. Online lifestyle sales surged 9.9%, likely reflecting last-minute Christmas gift purchases, while store sales dropped sharply by 6.9%.
Footfall weakened across all retail destinations.
Overall footfall fell 4.3% year-on-year, with high streets down 5.6%, shopping centres down 4.7% and retail parks down 4.3%.
BDO said ‘unsettled’ weather, including frequent rain and wind, may have discouraged in-person shopping during the crucial pre-Christmas period.
BDO is an accountancy and business advisory firm and produces the High Street sales tracker, which outlines weekly like-for-like sales changes of some 80 mid-tier retailers with around 10,000 stores across the UK.
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