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

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Quiz: Can you identify fake news?

The furore around "fake" news shows no sign of abating. Can you spot what's real and what's not?

Hillary Clinton has spoken out today to warn about the fake news epidemic sweeping the world. Clinton went as far as to say that "lives are at risk" from fake news, the day after Pope Francis compared reading fake news to eating poop. (Side note: with real news like that, who needs the fake stuff?)

The sweeping distrust in fake news has caused some confusion, however, as many are unsure about how to actually tell the reals and the fakes apart. Short from seeing whether the logo will scratch off and asking the man from the market where he got it from, how can you really identify fake news? Take our test to see whether you have all the answers.

 

 

In all seriousness, many claim that identifying fake news is a simple matter of checking the source and disbelieving anything "too good to be true". Unfortunately, however, fake news outlets post real stories too, and real news outlets often slip up and publish the fakes. Use fact-checking websites like Snopes to really get to the bottom of a story, and always do a quick Google before you share anything. 

Amelia Tait is a technology and digital culture writer at the New Statesman.