Retail sales fall at sharpest rate since Covid

Retail sales fell by 3.2% in December in the sharpest drop since the UK was in a Covid lockdown.

Official figures revealed a sharp fall in demand for goods, but food sales also declined in the run up to Christmas.

The Office for National Statistics (ONS) said it appeared people did their shopping earlier in November, taking advantage of Black Friday sales.

It meant that retail sales tumbled at the fastest rate since January 2021.

The ONS said the amount of non-food products people bought in December fell by 3.9%. That compares to a 2.7% increase in November.

Food demand was also down at the end of the year, falling 3.1%. In November, food sales rose by 1.1%.

Heather Bovill, deputy director for surveys and economic indicators at the ONS, said December's fall in retail sales "was the largest overall monthly fall since January 2021, when the reintroduction of pandemic restrictions knocked sales heavily".

While she said that discounting in November encouraged people to shop earlier for Christmas, there was also evidence from department stores, clothing retailers and those selling household goods that consumers spent less on gifts.