Christmas sales plummet as cost of living crisis and postal strikes bite

20 January 2023, 10:36

Christmas sales plummeted amid the cost of living crisis
Christmas sales plummeted amid the cost of living crisis. Picture: Alamy/ONS

By Will Taylor

Christmas sales plummeted as Brits found their pockets squeezed by the cost of living crisis and feared deliveries would be disrupted by strikes.

Sales collapsed by 5.8% compared to December 2021, the biggest fall for the month since records started in 1997.

The Office for National Statistics (ONS) estimates that retail sales volumes dropped by 1% in December, the second month it declined, dashing hopes that shops would see their first good Christmas since Covid broke out.

Heather Bovill, the Office for National Statistics' deputy director for surveys and economic indicators, said: "Retail sales dropped again in December with feedback suggesting consumers cut back on their Christmas shopping due to affordability concerns.

"After last month's boost as shoppers stocked up early, food sales fell back again in December with supermarkets reporting this was due to increased food prices and the rising cost of living.

Read more: NHS to face 'biggest ever strike ' on February 6 as ambulance workers announce 10 more walkouts

"Online sales dipped with feedback indicating postal strikes were leading people towards purchasing more goods instore."

Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: "Many of the cost pressures bearing down on retailers and their customers remain in 2023, with high energy costs, the war in Ukraine, and domestic labour shortages all taking their toll.

"However, BRC modelling suggests the situation will improve in the second half of the year."

Food shops fared better – seeing just a 0.3% drops in sales compared to the 2.1% seen by non-food shops in December.

The proportion of online sales fell to 25.4% in the month, from 25.9% the month prior.

More Latest News

See more More Latest News

A law that bans fake reviews and so called drip pricing for online shopping has come into force.

UK bans fake reviews and hidden fees in new law to protect online shoppers

Lucy Connolly was jailed for 31 months.

Tory councillor's wife who was jailed for inciting racial hatred after Southport attacks 'should be freed', says ex-PM

Chancellor Rachel Reeves said at last year's Budget that the move would raise £25 billion per year by 2029

Prices ‘pushed higher’ and warnings of job losses as National Insurance rise comes into effect

Video footage shows the convoy had emergency lights flashing when it was hit

Israel admits ‘mistakenly’ killing 15 aid workers after video leak contradicted official version of events

Police found two men stabbed on on Erconwald Street in East Acton. One of them died at the scene

Murder probe as man knifed to death in double stabbing in London street

Dan Norris, pictured here next to Keir Starmer has also been held on suspicion of misconduct in public office

Labour MP arrested on suspicion of rape and child sex offences

The victim, centre, and his two killers

Moment London knife victim, 22, buys drinks for his killers before they stab him to death in street

An armed Met counter-terror firearms unit at Downing Street

UK police chiefs ‘plan national counter-terrorism force’

Patrick Mullins aboard Nick Rockett after winning the Randox Grand Nationa

Nick Rockett wins 2025 Grand National at Aintree holding off last year's winner I Am Maximus

She was reportedly robbed outside an Italian restaurant in Cheshire

Wife of Man Utd goalkeeper Andre Onana ‘robbed of £62K handbag and Rolex’

Jaguar Land Rover has paused shipments to the US in the wake of 'Liberation Day' tariffs

Jaguar Land Rover halts shipments to US in wake of tariffs as Trump insists he'll win 'economic revolution'

The fire happened at Goldenbeach Holiday Park, Roman Bank, Ingoldmells.

Two people killed in caravan fire at holiday park in Lincolnshire

Easter eggs have been recalled over a potential risk of 'metal'

'Do not eat' warning as major chocolate brand recalls two Easter eggs amid fears they contain metal

Flowers and toys left on a swing seat to commemorate victims killed in Russia's missile attack on Friday

Death toll from Russian strike on Zelenskyy's home town rises as 18 confirmed dead - including nine children

Lucy Connolly

Tory councillor's wife who was jailed for racial hatred tweet after Southport attacks 'denied temporary release'

The scene at Beckenham Place Park

Body found in search for teenage boy who went missing while swimming in lake in south-east London