Executive Summary

• Official data and company updates confirm that it was a bumper holiday season. Total retail sales grew by 7.1% in December, the strongest December growth recorded in decades.
• Grocery retailers enjoyed a bumper month, with sales up 4.3%.
• Internet pure plays and mail-order retailers saw sales growth accelerate even further, to 30.9%.
• Leading midmarket retailers such as Marks & Spencer (M&S), Debenhams, Tesco, Sainsbury’s and Morrisons turned in better-than-expected top-line figures.
• Apparel saw an end-of-year improvement, with M&S reporting positive comps, Tesco, Sainsbury’s and Morrisons citing strong growth and ASOS and boohoo.com beating expectations.