Blood on the high street as retailers suffer their worst year ever

Last year was the worst on record for the sector, and Christmas trading brought little cheer. Matthew Partridge reports.

Last year was the worst ever for British retailers, says Sarah Butler in The Guardian. According to the British Retail Consortium and accountants KPMG, total sales slipped by 0.1% , the worst performance since they began monitoring the sector in 1995. One of the main factors behind the downturn was a 0.9% fall in sales in the “crucial” final two months of the year when many retailers make most of their money. In contrast to the high street misery, online sales rose by 2.6% in November and December.

Sales of clothing and footwear were hit particularly badly, say Andrew Atkinson and Lucy Meakin on Bloomberg. They fell by 2.3% year-on-year in the last three months, with retailers having to offer “deep discounts” to attract customers. This meant that stores from Marks & Spencer to John Lewis ended up being hit particularly hard. It’s not surprising that the retail sector is underperforming the UK market as a whole.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri