The Office for National Statistics (ONS) reported a 2.8% year-on-year decline in retail sales volumes in the UK for 2023, marking the lowest level since 2018. This marks the second consecutive annual fall, and ONS notes subdued longer-term expectations for retail sales. In December 2023, retail sales saw a significant 3.2% decline, the largest monthly fall since January 2021 when Covid restrictions impacted sales.
Food stores reported a steep fall in December, with the steepest decline since May 2021, while non-food store sales also saw a notable decrease. The British Retail Consortium (BRC) highlighted the challenges faced by retailers, with sales volumes in 2023 remaining below those in 2019. Retailers are hopeful for a rebound in consumer confidence and sales volumes in 2024 amid easing inflation and gradually rising wages.