December was better than hoped-for at retail, according to new figures from the British Retail Consortium, however the severe snow disruption seen in 2010 was a major one-off factor and there has been no change in customers' circumstances.

UK retail sales values were 2.2 per cent higher on a like for like basis from December 2010, when sales fell by 0.3 per cent, hit by snow.

On a total basis, sales were up 4.1 per cent, against a 1.5 per cent increase in December 2010.

"A better than hoped-for December closed a relentlessly tough year for retailers, but these figures hinged on a dazzling last pre-Christmas week and were boosted by some major one-off factors," said Stephen Robertson, director general of the BRC. "We're not witnessing any fundamental change in customers' circumstances.

"The comparison is with severe snow disruption a year ago. Discounting was deeper and started earlier and the vital Saturday Christmas Eve added another big trading day to the final run-up.

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"Post Christmas offers brought large numbers of shoppers out, but that was generally a short-lived hunt for bargains. With discounting driving sales at the expense of margins the key question for retailers is about earning from those sales.

"A solid December result hasn't rescued a pretty miserable year. Whole-year figures show minimal growth in 2011. For many customers, economic reality has bitten again since the New Year and, with consumer confidence returning to levels last seen during the recession, 2012 is expected to be an equally challenging year."

Non food, non-store sales growth picked up sharply from November's low, however. Sales were up 18.5 per cent on a year ago, double November's gain but similar to the 18.0 per cent in December 2010.

Robertson added: "This was the highest spending online Christmas yet, but online is a relatively small part of the overall retailing and the money worries that affected consumers last year have not gone away."