Strong Christmas Sales but Concerns for 2023 Remain
- UK retail sales increased by 6.9% in December 2022 compared to December 2021
- Total retail sales for 2022 increased by 3.1% from 2021
- Food sales rose by 3%, non-food sales increased by 3.2% for the year
- Retail sales up 6.5% on a like-for-like basis in December vs. 0.6% increase in 2021
- Growth remains below inflation, causing falling volumes for nine months
- Consumer spending constrained by rising costs
- Retailers face £7.5bn energy bill if Government’s Energy Support Scheme isn’t extended
The British Retail Consortium (BRC) reported a significant increase of 6.9% in total retail sales in December 2022 compared to the previous year, surpassing the 2.1% growth in December 2021. This growth is above both the three-month average of 4.4% and the 12-month average of 3.1%. Food sales increased by 3%, while non-food sales rose by 3.2% for the entire year. Like-for-like sales saw a 6.5% increase in December, up from a 0.6% rise in 2021, exceeding the three-month average growth of 4.1% and the 12-month average growth of 1.8%. Despite the positive holiday season performance, retailers continue to face falling volumes due to inflationary pressures and consumer confidence issues. BRC CEO Helen Dickinson expressed hope for an extension or further price hikes if the Energy Support Scheme isn’t renewed in April.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about retail sales growth in December 2022 compared to previous years, including specific percentages for total and like-for-like basis, as well as food and non-food sales. It also includes a quote from the chief executive of BRC discussing the challenges faced by retailers and their concerns regarding energy costs.
Noise Level: 3
Noise Justification: The article provides relevant and accurate information about retail sales growth in the UK, including specific figures and comparisons to previous years and averages. It also includes insights from a relevant source (BRC) and discusses potential challenges for retailers in the coming year. However, it lacks analysis or exploration of long-term trends or possibilities, antifragility, accountability, scientific rigor, staying on topic, evidence/data support, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: UK retail sales and consumer spending
Financial Rating Justification: The article discusses the increase in UK retail sales and its impact on various sectors, including food and non-food sales. It also mentions cost pressures faced by retailers and potential price rises if the Energy Support Scheme is not extended.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:
www.retailsector.co.uk