UK retail enjoyed a hugely successful Christmas sales period in December, giving the sector a much-needed boost heading into a new year still clouded by uncertainty.

John Lewis Oxford Street with shoppers wearing Covid masks carrying shopping bags

For the five weeks covering November 28 to January 1, total retail sales increased 9.9% on a year-on-year basis and 6.6% compared with pre-pandemic 2019 levels.

Food sales grew 3.1%, while non-food growth was 15.6% year on year, according to the BRC-KPMG sales monitor. 

On a total basis, sales increased by 2.1% in December, against a growth of 1.8% in December 2020 – above the three-month average growth of 2.8% and the 12-month average growth of 9.9%.

 

 

On a two-year basis total retail sales grew 4.8% in December 2021, compared with the same period in 2019. 

Online non-food sales decreased by 13.9% during December, compared with December 2020 when the UK was in lockdown for large parts of the month – this figure was below the three-month decline of 13.3%. Throughout 2021, online non-food sales increased by 14.3% compared with 2020.

On a two-year comparison, online non-food sales grew 24.4% in December.

Food and non-food sales up

UK retail sales increased 0.6% on a like-for-like basis from December 2020, when they had increased 4.8%. This was above the three-month average growth of 0.7%, but below the 12-month average growth of 8.9%.

Over the three months to December, food sales increased 0.4% on a total basis and 0.1% on a like-for-like basis, which was below the 12-month total average growth of 3.1%.

Over the three months to December, total non-food retail sales jumped 4.8% and increased by 1.4% on a like-for-like basis – this was below the 12-month total average growth of 15.6%.

Lorry queue Brexit

British Retail Consortium chief executive Helen Dickinson said: “Despite the recent Omicron outbreak, retail sales held up through December. Many people chose to shop online rather than travel to nearby high streets and shopping centres. Loungewear was back in fashion, as many pre-empted the possibility of future restrictions.

“Meanwhile, the return of work-from-home advice and reduction in Christmas social events, caused formalwear sales to slow. In the face of rising case numbers and supply chain issues, people in retail pulled out all the stops to ensure everyone got what they wanted this Christmas.

“Retailers did well to weather the challenging trade conditions, with retail sales for 2021 up on both the previous year and compared with pre-pandemic levels. Continuing a trend throughout the pandemic towards online shopping, 2021 saw a double-digit rise in non-food online sales, a testament to retailers’ huge investments in their online platforms.

“However, retail faces significant headwinds in 2022, as consumer spending is held back by rising inflation, increasing energy bills and April’s National Insurance hike.

“It will take continued agility and resilience if they are to battle the storm ahead, while also tackling issues from labour shortages to rising transport and logistics costs.”