Retailers suffer grim December

&Tab;&Tab;<div class&equals;"wpcnt">&NewLine;&Tab;&Tab;&Tab;<div class&equals;"wpa">&NewLine;&Tab;&Tab;&Tab;&Tab;<span class&equals;"wpa-about">Advertisements<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<div class&equals;"u top&lowbar;amp">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<amp-ad width&equals;"300" height&equals;"265"&NewLine;&Tab;&Tab; type&equals;"pubmine"&NewLine;&Tab;&Tab; data-siteid&equals;"111265417"&NewLine;&Tab;&Tab; data-section&equals;"2">&NewLine;&Tab;&Tab;<&sol;amp-ad>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;<&sol;div><p><a href&equals;"http&colon;&sol;&sol;londonglossy&period;com&sol;wp-content&sol;uploads&sol;2011&sol;01&sol;retailers-suffer-grim-december&period;jpg"><img class&equals;"alignnone size-full" title&equals;"The Arctic weather affected sales on the high street last month but M&&num;038&semi;S reported strong growth" src&equals;"http&colon;&sol;&sol;londonglossy&period;com&sol;wp-content&sol;uploads&sol;2011&sol;01&sol;min-retailers-suffer-grim-december&period;jpg" alt&equals;"The Arctic weather affected sales on the high street last month but M&&num;038&semi;S reported strong growth"&sol;><&sol;a><&sol;p>&NewLine;<p>The high street suffered its worst December on record last month as retailers battled with Arctic weather conditions and shoppers shunned higher prices&period;<&sol;p>&NewLine;<p>Retail sales volumes declined 0&period;8&percnt; month-on-month &&num;8211&semi; the lowest reading since records began in 1988&comma; the Office for National Statistics &lpar;ONS&rpar; said&period;<&sol;p>&NewLine;<p>Food stores saw a 3&period;4&percnt; drop in year-on-year sales volumes &&num;8211&semi; another record plunge &&num;8211&semi; as prices soared 5&percnt;&comma; the ONS added&period;<&sol;p>&NewLine;<p>Friday&&num;8217&semi;s official figures offer a definitive view on the impact the adverse weather and economic climate had on Christmas sales&comma; as varied trading reports from retailers such as Marks &&num;038&semi; Spencer&comma; Next and HMV have muddied the overall picture in the sector&period;<&sol;p>&NewLine;<p>High Street giant M&&num;038&semi;S and British department store favourite John Lewis reported strong sales growth earlier this month&comma; while fashion chain Next and entertainment group HMV blamed the severe weather for a slump in sales&period;<&sol;p>&NewLine;<p>In the supermarket industry&comma; Sainsbury&&num;8217&semi;s led the way&comma; with 3&period;6&percnt; like-for-like sales growth in the 14 weeks to January 8&comma; while UK number one Tesco disappointed with 0&period;6&percnt; same-store sales growth&period;<&sol;p>&NewLine;<p>But the biggest drop within overall retail sales volumes came from food&comma; which declined 0&period;9&percnt; month-on-month&comma; the ONS said&period; Soaring food prices&comma; reflected within the rising rate of Consumer Price Index inflation which stands at 3&period;7&percnt;&comma; were &&num;8220&semi;not helping&&num;8221&semi; food retailers&comma; the ONS said&period;<&sol;p>&NewLine;<p>But companies noted a change in shoppers&&num;8217&semi; behaviour during the severe weather spell &&num;8211&semi; consumers were turning to local stores to buy small volumes&comma; rather than heading to out-of-town behemoths for weekly or monthly shops&period;<&sol;p>&NewLine;<p>The ONS said internet sales continued to strengthen &&num;8211&semi; now constituting a record 10&period;6&percnt; of all retail sales &&num;8211&semi; as £770 million was spent online in December&period; But even internet food sales were hit by the weather&comma; the ONS added&comma; as retailers noted a tailing-off of sales after December 13&comma; when reports of delayed and failed deliveries started to surface&period; Household goods stores also performed badly&comma; matching the 0&period;9&percnt; month-on-month decline seen in food&period;<&sol;p>&NewLine;<p>The ONS said there was no evidence to suggest consumers were snapping up big-ticket items&comma; such as televisions or fridges&comma; ahead of January&&num;8217&semi;s VAT hike&comma; as electrical appliances declined in December&period; Department stores did weather the storm&comma; and were up 0&period;3&percnt; month on month&comma; with the new Xbox Kinect selling well across the sector&period; The ONS noted a rise in sales volumes at sport equipment stores&period; The volume of retail sales was also flat year-on-year&comma; once again a record low&comma; the ONS said&period; The value of retail sales rose 2&percnt; year-on-year&comma; but declined 0&period;6&percnt; month-on-month&period;<&sol;p>&NewLine;&Tab;&Tab;&Tab;<div style&equals;"padding-bottom&colon;15px&semi;" class&equals;"wordads-tag" data-slot-type&equals;"belowpost">&NewLine;&Tab;&Tab;&Tab;&Tab;<div id&equals;"atatags-dynamic-belowpost-68e1d25ef0411">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<script type&equals;"text&sol;javascript">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback &equals; function &lpar;&rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;if &lpar; false &equals;&equals;&equals; &lpar; window&period;isWatlV1 &quest;&quest; false &rpar; &rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&sol;&sol; Use Aditude scripts&period;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;tudeMappings &equals; window&period;tudeMappings &vert;&vert; &lbrack;&rsqb;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;tudeMappings&period;push&lpar; 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