According to the British Retail Consortium (BRC) and KPMG sales monitor, the U.K. retail sales increased by an annual rate of 0.1% on a like-for-like basis in December, after a 0.4% decline in November.

On a total basis, retail sales climbed 1.0% year-on-year in December.

"2015 drew to a disappointing close for retailers, with December seeing just 1 per cent sales growth, notwithstanding the strong underlying momentum of an improving consumer environment buoyed by rising real incomes, low inflation and low unemployment," BRC Chief Executive, Helen Dickinson, said.