Shop sales in shock December drop with supermarket food hit
Published On Jan 17, 2025, 3:55 AM
In December, UK shop sales fell by 0.3%, contrary to expectations of a 0.4% rise, marking a poor month for supermarket food sales which hit the lowest level in over a decade. Despite this decline, clothing and shoe sales increased by 4.4% due to pre-Christmas spending. These disappointing figures raised concerns about the UK economy's health, causing the pound to drop against the dollar. Economists believe the economy was lacking momentum at the end of 2024 but expect sales to improve in the new year.
Stock Forecasts
COST
Negative
The unexpected drop in supermarket food sales indicates a lack of consumer confidence which could affect retailers going forward. However, the rise in clothing sales shows some sectors may perform better. Retail food providers might struggle in the short term as a result of this data but could rebound if conditions improve. Investors should be cautious about supermarket stocks, anticipating possible declines.
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