**December Retail Sales Plummet in London – London Business News**
Retail sales in London took an unexpected hit in December, declining by 0.3%, as reported by the Office for National Statistics (ONS). This news comes as a blow to the sector, with experts predicting a 0.4% increase in sales for the festive season. The drop in sales was particularly noticeable in food stores, which saw a significant 1.9% decrease, the lowest level in over a decade. Butchers, tobacco, and alcohol shops also experienced a decline in sales during this period. On the brighter side, clothes and shoe shops saw a 4.4% increase in sales, while department and household goods stores had a successful Christmas season.
**Expert Insights on Retail Sales Trends**
According to ONS senior statistician Hannah Finselbach, the decrease in retail sales in December follows a slight increase in the previous month. She noted that the poor performance in food sales, reaching their lowest level since 2013, was a major contributing factor to the overall decline. Finselbach highlighted the positive performance of clothing and household goods stores, where retailers reported strong Christmas trading.
Kris Hamer, Director of Insight at the British Retail Consortium, shared his perspective on the retail sales trends. Despite a pickup in sales during December, it was not enough to offset the challenges faced during the ‘Golden Quarter’. Hamer mentioned that non-food items like electricals, beauty products, and books were popular choices for holiday gifts. However, sales of furniture and other large ticket items struggled, as consumers hesitated to make significant purchases. Clothing and footwear sales also remained subdued during this period.
**Challenges Ahead for the Retail Industry**
Hamer raised concerns about the increasing costs facing the retail industry, including higher employer national insurance contributions, a raised National Living Wage, and a new packaging levy. These additional expenses, amounting to £7 billion by 2025, are putting pressure on retailers who are already burdened with high taxes. To cope with these challenges, Hamer emphasized the need for government support, particularly in reforming business rates to prevent further financial strain on shops.
