Five questions answered on bleak December high street sales figures

Causes and effects.

High street sales figures were down in December despite the festive season official figures show. We answer five questions on the latest high street sales figures.

How much are December sales figures down by?

Newly released seasonally adjusted sales figures for December show a fall of 0.1 per cent compared to the month before, figures from the Office of National Statistics show.

Compared to a year earlier the quantity of goods sold rose by 0.3%, which is worse than expected.

With the exception of 2010 this is slowest year-on-year growth in December sales since 1998.

Which sectors of the industry are down the most?

Clothes and food sales are down most notably. Household goods were down 3 per cent, the biggest decline since January 2010.

Food sales fell by 0.3 per cent from the month before and fashion sales dropped by 3.5 per cent.

Which sectors rose?

Unsurprisingly, online shopping. About 10.6 per cent of December sales were carried out online, up from 9.4 percent the year before. Overall, total online sales were up 15.5% from a year earlier.

The data tallies with figures from research firm Experian that suggested the number of visits to retail websites rose 86% on Christmas Eve, 71% on Christmas Day and 17% on Boxing Day compared with a year earlier, due to many online stores beginning their online sales before Christmas.

What are the experts saying?

“With many household budgets still feeling the squeeze and no signs of economic challenges receding any time soon, this led to a respectable rather than spectacular result during the most crucial trading period of the year,“ Helen Dickinson, director of the British Retail Consortium, told The Telegraph.

"As with our own figures, the internet was the standout performer – our own figures would have shown subzero growth in non-food sales if it hadn’t been for online's significant year on year rise.

“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.”

What is the potential long term effect?

The figures indicate that another recession could be heading Britain’s way. If the economy contracts during the current quarter it would mean the country could experience a third recession in a row.

It also means that more money creation by the Bank of England could occur. The bank could also change its inflation target to allow for higher prices rises, all of which could weaken the pound.

 

High street sales figures were down in December. Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Photo: Getty
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Want to beat Theresa May? First, accept that she's popular

The difficult truth for the centre and left, and advocates of a new party, is that people don't "vote for the Tories reluctantly".

An election campaign that has been short on laughs has been livened up by a modest proposal by an immodest man: the barrister Jolyon Maugham, who used to write about tax for the New Statesman as well as advising Eds Miliband and Balls, has set out his (now mothballed) plans for a new party called Spring.

The original idea was a 28-day festival (each day would be celebrated with the national costumes, food and drink of one of the European Union’s member states) culiminating in the announcement of the candidacy of Spring’s first parliamentary candidate, one Jolyon Maugham, to stand against Theresa May in her constituency of Maidenhead. He has reluctantly abandoned the plan, because there isn’t the time between now and the election to turn it around.

There are many problems with the idea, but there is one paragraph in particular that leaps out:

“Like Sherlock Holmes and Moriarty, Labour’s left and moderates are bent on one another’s destruction. No one knows what the Lib Dems are for – other than the Lib Dems. And we vote for the Tories reluctantly, lacking an alternative.”

Even within this paragraph there are a number of problems. Say what you like about Sherlock Holmes and Moriarty but it seems hard to suggest that there is not a fairly large difference between the two – regardless of which one you think is which – that might perhaps be worth engaging with. There are fair criticisms of the Liberal Democrats’ uncertain start to this campaign but they have been pretty clear on their platform when they haven’t been playing defence on theological issues.

But the biggest problem is the last sentence: “We vote for the Tories reluctantly, lacking an alternative”. A couple of objections here: the first, I am not sure who the “we” are. Is it disgruntled former Labour members like Maugham who threw their toys out of the pram after Corbyn’s second successive leadership victory? If you are voting for the Tories reluctantly, I have invented a foolproof solution to “voting for the Tories reluctantly” that has worked in every election I’ve voted in so far: it’s to vote against the Tories.  (For what it’s worth, Maugham has said on Twitter that he will vote for the Liberal Democrats in his home constituency.)

I suspect, however, that the “we” Maugham is talking about are the voters. And actually, the difficult truth for the left and centre-left is that people are not voting for Theresa May “reluctantly”: they are doing it with great enthusiasm. They have bought the idea that she is a cautious operator and a safe pair of hands, however illusory that might be. They think that a big vote for the Tories increases the chance of a good Brexit deal, however unlikely that is.

There is not a large bloc of voters who are waiting for a barrister to turn up with a brass band playing Slovenian slow tunes in Maidenhead or anywhere in the country. At present, people are happy with Theresa May as Prime Minister. "Spring" is illustrative of a broader problem on much of the centre-left: they have a compelling diagnosis about what is wrong with Corbyn's leadership. They don't have a solution to any of Labour's problems that predate Corbyn, or have developed under him but not because of him, one of which is the emergence of a Tory leader who is popular and trusted. (David Cameron was trusted but unpopular, Boris Johnson is popular but distrusted.) 

Yes, Labour’s position would be a lot less perilous if they could either turn around Jeremy Corbyn’s popularity ratings or sub him out for a fresh, popular leader. That’s one essential ingredient of getting the Conservatives out of power. But the other, equally important element is understanding why Theresa May is popular – and how that popularity can be diminished and dissipated. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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