–Dec Retail Sales inc. fuel -0.8% m/m; unch. y/y
–Dec retail sales ex fuel -0.3% m/m; +1.0% y/y

LONDON (MNI) – Retail sales declined at their fastest pace for more
than twenty years for a December, as food sales were hit by cold weather
and rising prices, according to figures released by National Statistics
Friday.

Retail sales volumes including auto fuel fell 0.8% on the month in
December and were unchanged on the year. These were the lowest monthly
and yearly outturns for a December since records began in 1988.

Analysts had expected to see a smaller fall of 0.3% on the month
and a rise of 1.1% on the year. There was, however, a small upward
revision to November which now shows a rise of 0.4% on the month
compared with the initial estimate of 0.3%.

Excluding auto fuel sales were down less sharply, falling by 0.3%
on the month and rising 1% on the year, but still below the median
forecast for a flat outturn on the month and a rise of 1.5% on the year.

Food sales plunged 0.9% on the month and were down 3.4% on the
year, the largest yearly fall on record. National Statistics said that a
combination of the coldest December for a hundred years and the rising
cost of food had hit sales volumes.

The cold weather appeared to have driven sales away from larger out
of town supermarkets to more local shops where consumers purchased
lower quantities of produce.

Food price inflation rose to 5% in December, the highest since
April 2009, and National Statistics said that there was evidence that
the rising price of food was now starting to have a negative impact on
the amount bought by shoppers.

Sales at predominantly non-food stores fell 0.6% on the month, the
weakest since January 2010. The decline was led by a 2% fall in clothing
and footwear sales, the largest drop since February 2009.

There was also a sharp fall in sales at household goods stores
where volumes fell 0.9% on the month in December.

Other stores, which include smaller retailers, rose 0.5% on the
month and sales at department stores rose 0.3%.

Non-store retailing and repair which includes internet sales leapt
5.4% on the month.

–London bureau: 00 44 207 862 7492; email: drobinson@marketnews.com

[TOPICS: MT$$$$,M$B$$$,MABDS$]