London retailers experienced their worst like-for-like growth this Christmas since 2004. December sales in the capital were 0.7 per cent lower than a year ago on a like-for-like basis.

London retail sales have now been lower that the previous year for four consecutive months.

Footfall in December was stronger than in previous months and higher than the year before, but despite heavy discounting shoppers were reluctant to spend – particularly on homewares, clothing and footwear.

Food sales held up, partly due to higher food prices.

However, the capital did outperform the rest of the UK in the period when retail sales fell 3.3 per cent in December.

The New West End Company, which represents retailers in the capital’s shopping mecca, said that footflow in December was 0.4 per cent up year-on-year, against a national drop of 7.3 per cent.

BRC director-general Stephen Robertson said: “In the context of today’s tough conditions, these are weak figures that could have been worse.

“Some retailers did have strong individual days just before Christmas but overall those didn’t compensate for the dismal weeks before that. City job losses are serious and generating a lot of publicity but, generally, London customers are slightly less pessimistic than those in other parts of the country.”