Retailers are likely battening down their hatches for a turbulent Yuletide trading period, with recent figures from the Office for National Statistics (ONS) suggesting it could be particularly testing.

ONS statistics showed total sales volume dipped by 0.4 per cent in the three months to the end of September. The British Retail Consortium, via director general Stephen Robertson, agrees that ‘the official figures rightly confirm overall sales growth is slowing and conditions toughening for customers and retailers as the crucial run-up to Christmas begins.’

‘With almost all sales growth confined to food, many non-food retailers are under huge pressure. Not only are sales hard to come by but deep and widespread discounting is putting margins under tremendous pressure as costs rise. Even food sales growth is slowing as the rate of food price rises comes down.’

The CBI added that, from its own more recent survey of 20,000 outlets, half of all retailers said that the volume of sales in the first half of October was down on last year. For November, 25 per cent more retailers expect sales to fall than rise.

‘Shoppers face competing pressures on their wallets and are spooked by worries over job losses and the slowing economy,’ explains Asda retail director Andy Clarke, chairman of the CBI Distributive Trades Panel. ‘The sector looks set to endure a very challenging run-up to Christmas.’