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| Worst year for retail in 25 years, says trade body | Worst year for retail in 25 years, says trade body |
| (about 5 hours later) | |
| Retail sales fell for the first time in 25 years last year, according to the leading UK retail industry body. | Retail sales fell for the first time in 25 years last year, according to the leading UK retail industry body. |
| The British Retail Consortium (BRC) said total sales fell 0.1%, marking the first annual sales decline since 1995. | The British Retail Consortium (BRC) said total sales fell 0.1%, marking the first annual sales decline since 1995. |
| Sales in November and December were particularly weak, falling 0.9%, the BRC said. | Sales in November and December were particularly weak, falling 0.9%, the BRC said. |
| A separate report from Barclaycard found a rise in consumer confidence had failed to boost festive spending. | A separate report from Barclaycard found a rise in consumer confidence had failed to boost festive spending. |
| The payments firm, which processes nearly half of all UK debit and credit transactions, said that consumer spending growth had declined if inflation was taken into account. | The payments firm, which processes nearly half of all UK debit and credit transactions, said that consumer spending growth had declined if inflation was taken into account. |
| Helen Dickinson, chief executive of the BRC, said: "Twice the UK faced the prospect of a no-deal Brexit, as well as political instability that concluded in a December general election - further weakening demand for the festive period. | Helen Dickinson, chief executive of the BRC, said: "Twice the UK faced the prospect of a no-deal Brexit, as well as political instability that concluded in a December general election - further weakening demand for the festive period. |
| "Retailers also faced challenges as consumers became both more cautious and more conscientious as they went about their Christmas shopping," she added. | "Retailers also faced challenges as consumers became both more cautious and more conscientious as they went about their Christmas shopping," she added. |
| Are these figures too gloomy? | Are these figures too gloomy? |
| The BRC's figures do not include the entire retail market. For instance, its survey excludes some fast-growing online retailers, including Amazon, which some experts reckon now account for some 20% of online sales. | The BRC's figures do not include the entire retail market. For instance, its survey excludes some fast-growing online retailers, including Amazon, which some experts reckon now account for some 20% of online sales. |
| However, its chief executive told the BBC Today programme she felt the figures did give "an accurate picture". | However, its chief executive told the BBC Today programme she felt the figures did give "an accurate picture". |
| Ms Dickinson said: "These figures are not an estimate, they are full sales data from retailers that represent the majority of retail sales." | Ms Dickinson said: "These figures are not an estimate, they are full sales data from retailers that represent the majority of retail sales." |
| She added: "While it is not 100% of retailers in the country, some businesses that aren't included will also be compensated by those that have gone bust." | She added: "While it is not 100% of retailers in the country, some businesses that aren't included will also be compensated by those that have gone bust." |
| The BBC's business correspondent Emma Simpson says: "Figuring out what's going on in retail can be a bit of a jigsaw puzzle, and this is certainly a very large piece, particularly when it comes to reflecting how our biggest, traditional, chains are faring." | The BBC's business correspondent Emma Simpson says: "Figuring out what's going on in retail can be a bit of a jigsaw puzzle, and this is certainly a very large piece, particularly when it comes to reflecting how our biggest, traditional, chains are faring." |
| What is the difference between total and like-for-like sales? | What is the difference between total and like-for-like sales? |
| Total sales figures look at all sales, while like-for-like data compares sales from shops that were open the previous year, stripping out the effects of expansion in a business. | Total sales figures look at all sales, while like-for-like data compares sales from shops that were open the previous year, stripping out the effects of expansion in a business. |
| Like-for-like retail sales climbed in December, but that was due to a relatively late Black Friday, the BRC said. Once November, was included to include this distortion, like-for-like sales dropped 1.2% compared with the previous year, it said. | Like-for-like retail sales climbed in December, but that was due to a relatively late Black Friday, the BRC said. Once November, was included to include this distortion, like-for-like sales dropped 1.2% compared with the previous year, it said. |
| Despite the drop in total sales last year, the volume of sales was still higher than in 2017. | Despite the drop in total sales last year, the volume of sales was still higher than in 2017. |
| Payments company Barclaycard said in a separate report that supermarket sales contracted by 0.9% in December, while sales at specialist retailers such as toys and gaming stores fell 4%. | Payments company Barclaycard said in a separate report that supermarket sales contracted by 0.9% in December, while sales at specialist retailers such as toys and gaming stores fell 4%. |
| However, it picked out some bright spots, noting cinema sales rose by 19%, helped by blockbuster releases including Star Wars: The Rise of Skywalker and Frozen II. Spending in pubs and takeaways also rose over the festive period. | However, it picked out some bright spots, noting cinema sales rose by 19%, helped by blockbuster releases including Star Wars: The Rise of Skywalker and Frozen II. Spending in pubs and takeaways also rose over the festive period. |
| Which shops struggled last year? | Which shops struggled last year? |
| It's been a tough year for High Street retailers with several shops either going into administration or announcing job losses in 2019. | It's been a tough year for High Street retailers with several shops either going into administration or announcing job losses in 2019. |
| Mothercare UK, Bonmarche and luxury jeweller Links of London all went into administration last year. | Mothercare UK, Bonmarche and luxury jeweller Links of London all went into administration last year. |
| Meanwhile, Philip Green's Arcadia retail empire, HMV and Debenhams both announced significant store closures. | Meanwhile, Philip Green's Arcadia retail empire, HMV and Debenhams both announced significant store closures. |
| Why are shops struggling? | Why are shops struggling? |
| Costs are rising, with business rates, rents and wages taking a bigger chunk of retailers' expenditure. And with footfall in decline, many shops are simply too big and frequently in the wrong locations. | Costs are rising, with business rates, rents and wages taking a bigger chunk of retailers' expenditure. And with footfall in decline, many shops are simply too big and frequently in the wrong locations. |
| Also, High Street retailers are under pressure from changing shopping habits, with customers spending one in every £5 online. | Also, High Street retailers are under pressure from changing shopping habits, with customers spending one in every £5 online. |