Main story
Retail sales fell 3.2% in December, the worst monthly decline since the coronavirus pandemic, as consumers cut spending ahead of Christmas.
Retail sales fell 3.2% in December after rising 1.4% in November, according to the Office for National Statistics.
The ONS said the December drop was the biggest monthly drop since January 2021, when sales were hit by Covid-19 restrictions.
Total non-food sales (total sales of department stores, clothing, furniture, and other non-food items) fell 3.9 percent in December 2023, compared to an increase of 2.7 percent in November 2023.
December's decline in retail sales is partly due to shoppers buying gifts earlier than usual in November.
This was confirmed by the ONS Opinion and Social Trends Bulletin from 29 November to 10 December, where 46% of adults had spent or planned to spend some money on Christmas food or presents, while 39% had already bought Christmas food or presents. . , cost sharing.
Non-grocery retailers also reported weak post-Christmas sales, with sales falling due to lower average consumer spending due to a lower cost of living and a tough economic climate.
According to the ONS, food production growth slowed during the month.
Sales fell 3.1% month-on-month and 0.1% month-on-month in the three months to December 2023, compared with the previous three months.
Consumers said the 1.1% increase in sales in November was driven by early Christmas shopping, which was partly offset by a decline in December.
Total quarterly retail sales data showed a 0.9% decline in the three months to December 2023 from the previous three months.
On an annual basis, sales in 2023 fell 2.8 percent to the lowest level since 2018.
Morning update
Food delivery giant Deliveroo reported earnings that continued to grow in the fourth quarter.
In the three months ended December, Delviero's GTV (gross transaction value) remained flat in line with the booking trend.
GTV at constant currencies increased 4% year-over-year despite lower inflation, order growth increased slightly and remained flat year-over-year.
GTV in the UK and Ireland increased by 7% year-on-year during the quarter, with GTV trends remaining stable. The sequential decrease in growth compared to the third quarter was due to a number of factors, including certain restaurant partners actively managing to strengthen customer confidence through lower prices and improved operational performance.
GTV International again recorded 1% year-on-year growth in constant currencies, bucking trends in most markets and maintaining a strong position in Italy and the UAE.
GTV growth declined in the quarter with 1% total group revenue growth in constant currency. This is due to the shift of marketing costs to promotional and marketing activities, as well as some investments in consumer rewards to take advantage of signs of stabilization in consumer behavior.
Full-year GTV growth was in line with forecasts for low-single-digit growth of 3%.
However, adjusted EBTA is expected to be slightly higher than the estimated £60-80m.
Deliveroo founder and CEO Will Shu said: “I'm incredibly proud of what the team delivered in the fourth quarter, including the launch of our retail offering. We performed well in the UK and saw GTV return to global growth with encouraging trends in many markets.
"As consumer behavior indicators continued to stabilize this quarter, we continued to invest in our consumer offerings to underpin future growth. We finished 2023 with GTV in line with guidance and adjusted EBITDA above our guidance range."
In the market this morning, the FTSE 100 rose another 0.6% to 7,503.6.
Early birds include Bare Grape (+5.8% to 58.9p), Glanbia (+3.9% to €15.96) and Kerry Group (+2.5% to €77.40).
Declining stocks included McBride down 2.8% to 77.6p, Science in Sport down 1.7% to 14p and Marks & Spencer down 0.4% to 252.9p.
Yesterday in the city
The FTSE 100 was up 0.2% yesterday after falling sharply for the week to close at 7459.1.
Despite lower forecasts for overall buying activity, still wine rose 7.1% to 55.7p after beating forecasts for Christmas sales.
Bacavore shares closed 5.7% higher at 96.8p after posting strong holiday sales data.
Other risers included Just Eat Takeaway.com (+7% to 1,170p), Glanbia (+5.2% to €15.36), Nicholls (+2.3% to 1,110p), AG Barr (+1.5 % - 545 pence), Greencore (from 1.5% to 97.5 pence). pp and PayPoint - from 1.4% to 506p.
In Europe B&M Retail (down 3.4% to 524.8 pence), Kerry Group (down 2.8% to €75.50), DS Smith (down 1.8% to 278.4 pence), Hilton Food Group (1.6 % down to 782p) and Ocado prices fell. prices. (up to 782p). 1.5% to 571.4 pp.
