Sales of£33.4 billion were 4.7 per cent higher by value than the previous December.
Total sales volumes for December increased 1.1 per cent month on month, with sales volumes rising 1.4 per cent for non-food stores and 0.6 per cent for food stores. The largest monthly increase was household goods stores at 5.2 per cent, the highest for this sector since December 2005, reflecting strong sales of electrical goods. December's sales by non-store retailing increased 1.7 per cent on the month.
The volume of retail sales in the three months to December was 1.4 per cent higher than the previous three months.
Commenting on the figures, Barclays business banking retail and wholesale sectors national director Paul Clarke said: 'Sales were strong in the crucial run up to Christmas and the January Sales seem to have gone well, with retailers careful to avoid over-stocking this year.
'Internet sales continue to rise, with more consumers than ever avoiding the high street rush. Increasingly, there is a polarisation between retailers that do well and those that don't. The internet is a key factor in this divide.
'The next quarter will not be an easy one for retailers; 2007 will probably see margins under pressure with the end of price deflation. Three interest rate rises in six months will not have done a lot for consumer confidence and with utilities costs and rent prices remaining high, the coming months may prove tough. Those retailers who have a good strategy, do their bit for the environment and adopt a multichannel approach - embracing the opportunities presented by the internet - will undoubtedly fare best in 2007.'
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