UK Retailers Post Worst December Ever

Retail sales in the U.K. were the lowest on record in December as harsh winter weather weighed on holiday shopping and rising prices dissuaded potential shoppers, according to The Daily Telegraph.

Retail sales in the U.K. were the lowest on record in December as harsh winter weather weighed on holiday shopping and rising prices dissuaded potential shoppers, according to The Daily Telegraph. On Friday, the Office for National Statistics reported that retail sales volumes dropped 0.8% in December from the previous month, which is the lowest reading in over two decades of data. Food stores led declines, with sales slipping 0.9% from the month before, and dropping by a record 3.4% year-over-year thanks in large part to a 5% increase in prices.

The down month brought the volume of retail sales for the year to no change in volume from the previous year, which is also a record low, although the value of sales added 2% during 2010. Howard Archer of IHS Global Insight said the data “suggests that overall consumer spending growth was muted in the fourth quarter” after a strong third quarter performance. The ONS added that large purchases did not appear to increase as had been expected with the value-added tax increasing in January.

Click here to read the story from The Daily Telegraph.