BUSINESS INTELLIGENCE
ONS
December spend declines as Omicron reins in plans Sales fall followed growth in October and November.
R
etail sales volumes and values fell by 3.7% and 3.1% in December 2021 as the spread of Omicron slowed Christmas spending, latest ONS data has revealed. The slide followed marginal growth in October and November, with ONS analysis having suggested that shoppers engaged in earlier Christmas trading during those months. Most of the fall was driven by nonfood stores, such as clothing and furniture, which reported a fall of 7.1% in sales volumes, as fears over the Omicron variant impacted sales.Food store sales volumes meanwhile, fell by 1.0% in December 2021. However, despite the December decline, volumes were still 2.0% above levels in February 2020. In 2021 as a whole, the volume of retail sales rose by 5.1%, which is the strongest growth since 2004. EY UK & I Retail Lead Silvia Rindone commented: “Retail sales volumes fell month-on-month in December but were still above their pre-pandemic levels – a good result considering the last-minute restrictions that were imposed and the impact on footfall from the emergence of the Omicron variant.” British Retail Consortium Chief Executive, Helen Dickinson, said: “The
spread of Omicron may have slowed Christmas spending, but the perseverance of retailers helped deliver a successful Christmas for consumers. “Retail workers pulled out all the stops to overcome supply chain issues to keep customers’ homes stocked with festive items.” She added: “Customers face strong headwinds in 2022, with energy prices
and National Insurance contributions both set to rise. “Rising inflation is reducing consumer demand while increasing the costs for businesses. Retailers face rising wage bills, increased transport costs, and increased checks and documentation as a result of new import controls, all of which are forcing up prices at the checkout.”
WEDNESDAY 26TH JANUARY 2022 / ISSUE 89 / SLRMAG.CO.UK / 27
