Despite hopes that Christmas shopping would contribute to a recovery, retail sales fell by 1.8 percent in December compared to the previous month.

The Christmas season is usually one of the most important periods for the retail trade, but this year it was a disappointment.

- These are very bad sales figures, says Emma Hernell, CEO of the Trade Research Institute.

Some industries have been hit harder than others.

According to Statistics Norway's statistics, the trade in durable goods decreased by 10.5 percent.

The grocery trade, which includes grocery stores and supermarkets, fared better, where the decline was 5 percent.

Won for H&M

Some of the hardest hit are H&M, which reported a sharp profit for the fourth quarter.

It was just under a billion in profit for the company, compared to SEK 6 billion in the same quarter the year before.

- It has really been a turbulent year and a lot hits during the fourth quarter.

There have been several external factors such as inflation, a strong dollar and the decision to wind down operations in Russia, says H&M CEO Helena Helmersson to SVT Nyheter.

Despite the vulnerable situation, H&M has chosen not to raise prices fully.

- We have also had to raise prices, but not to the extent that it covers the entire increase in costs.

Tough times ahead

Emma Hernell states that we have faced the downturn and that it will get worse before it gets better.

- Consumers are preparing for it to be even tougher ahead with interest rate increases and so on, so we can probably expect an even gloomier time in the retail trade.

Hear more in the video above about what the weak Christmas trade means.