There was some festive cheer for South Africa’s retailers after all, it has emerged, with news that retail sales for the crucial Christmas period were better than expected.

While the official figures from Statistics SA revealed another decline in retail sales in December 2008, the decline was better than expected raising hopes that retailers may be through the worst of the consumer downturn.

Statistics SA reported that retail sales at constant (2000) prices slipped 0.1% in December 2008 compared with the same period a year earlier. November retail sales were revised to a 4.4% decline on the year earlier period.

Total retail sales for 2008 fell 2.2% against 2007, the first annual decline in nine years. 

As expected retailers in household furniture, appliances and equipment felt the pinch over Christmas, with their contribution contributing a 0.7% drop to the change in retail trade sales.