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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/01/retailers-suffer-grim-december.jpg"><img class="alignnone size-full" title="The Arctic weather affected sales on the high street last month but M&#038;S reported strong growth" src="http://londonglossy.com/wp-content/uploads/2011/01/min-retailers-suffer-grim-december.jpg" alt="The Arctic weather affected sales on the high street last month but M&#038;S reported strong growth"/></a></p>
<p>The high street suffered its worst December on record last month as retailers battled with Arctic weather conditions and shoppers shunned higher prices.</p>
<p>Retail sales volumes declined 0.8% month-on-month &#8211; the lowest reading since records began in 1988, the Office for National Statistics (ONS) said.</p>
<p>Food stores saw a 3.4% drop in year-on-year sales volumes &#8211; another record plunge &#8211; as prices soared 5%, the ONS added.</p>
<p>Friday&#8217;s official figures offer a definitive view on the impact the adverse weather and economic climate had on Christmas sales, as varied trading reports from retailers such as Marks &#038; Spencer, Next and HMV have muddied the overall picture in the sector.</p>
<p>High Street giant M&#038;S and British department store favourite John Lewis reported strong sales growth earlier this month, while fashion chain Next and entertainment group HMV blamed the severe weather for a slump in sales.</p>
<p>In the supermarket industry, Sainsbury&#8217;s led the way, with 3.6% like-for-like sales growth in the 14 weeks to January 8, while UK number one Tesco disappointed with 0.6% same-store sales growth.</p>
<p>But the biggest drop within overall retail sales volumes came from food, which declined 0.9% month-on-month, the ONS said. Soaring food prices, reflected within the rising rate of Consumer Price Index inflation which stands at 3.7%, were &#8220;not helping&#8221; food retailers, the ONS said.</p>
<p>But companies noted a change in shoppers&#8217; behaviour during the severe weather spell &#8211; consumers were turning to local stores to buy small volumes, rather than heading to out-of-town behemoths for weekly or monthly shops.</p>
<p>The ONS said internet sales continued to strengthen &#8211; now constituting a record 10.6% of all retail sales &#8211; as £770 million was spent online in December. But even internet food sales were hit by the weather, the ONS added, as retailers noted a tailing-off of sales after December 13, when reports of delayed and failed deliveries started to surface. Household goods stores also performed badly, matching the 0.9% month-on-month decline seen in food.</p>
<p>The ONS said there was no evidence to suggest consumers were snapping up big-ticket items, such as televisions or fridges, ahead of January&#8217;s VAT hike, as electrical appliances declined in December. Department stores did weather the storm, and were up 0.3% month on month, with the new Xbox Kinect selling well across the sector. The ONS noted a rise in sales volumes at sport equipment stores. The volume of retail sales was also flat year-on-year, once again a record low, the ONS said. The value of retail sales rose 2% year-on-year, but declined 0.6% month-on-month.</p>
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