Retailers brace for difficult 2022 after sharp monthly fall in UK spending

The slump in retail sales included food, clothing and footwear, household goods and department stores. Photograph: Toby Melville/Reuters

Retailers are bracing themselves after a sharp fall in December spending was expected to be the prelude to a tough year ahead as consumers grapple with the impact of higher taxes and rising energy bills.

Hopes of bumper Christmas trading were dashed as the arrival of the Omicron variant prompted a more cautious mood among shoppers and led to a 3.7% monthly drop in retail sales.