Mixed Reports on Christmas Sales

The Office of National Statistics said that greater numbers of consumers traded down to cheaper food over Christmas compared with the year before.

Food sales in December rose by just 1.7% in value compared with 2011, although this is not seasonally adjusted. Food sales in Scotland were 1.4% up in value on December 2011, but 2.7% down in real terms.

And footfall in December was 1.2% lower than a year ago, a poorer performance than the 0.4% rise the previous month.

However, some food retailers reported growth, especially those that offered internet shopping.

The Co-operative Group said it benefited from consumers making last-minute visits to local branches to stock up on last-minute groceries.

Ocado also reported a 14% increase in sales in the six weeks to the 6th January. Shoppers apparently spent more per shop compared with Christmas in 2011.

Matt Piner, an analyst for retail consultancy Conlumino, said, “We’ve seen online do very well over Christmas for food and grocery. Co-op doesn’t tap into that directly but it means people will stop into smaller stores on their way home.”

Kantar Worldpanel released figures showing the grocery market grew by 3.8% over Christmas and the new year, although this was mostly down to price inflation rather than increased sales.

Helen Dickinson, director of the British Retail Consortium
“It wasn’t a bumper Christmas but it wasn’t a disaster either. Our December retail sales figures showed very modest sales growth for the market as a whole.

“High streets have a particular appeal at Christmas. They had a smaller drop in footfall than shopping centres or out-of-town locations but across the year as a whole it’s a different story. At -3.3% high streets suffered the biggest drop-off in shopper numbers. Generally, weak spending power is keeping people away and compounding long-standing difficulties in many of our town centres. This month’s retail failures confirm the challenges are far from over.

“Even food, usually dependable at this time of year, showed a slowdown in growth. This suggests that relentlessly tough times led many to trade down to cheaper and own-label brands, but also that many economised so that they had more money to spend treating family and friends with nice presents.”