UK retail sales saw a modest rise in December 2024, but the Christmas trading period did not deliver the boost many retailers had anticipated. According to the latest data from the British Retail Consortium (BRC), total retail sales increased by 3.2% year-on-year, up from a 1.9% rise in December 2023. However, the timing of Black Friday, which fell in December rather than November this year, impacted the figures.
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The BRC noted that this shift artificially worsened November sales while inflating December's performance. As a result, the impact balances out when assessing the three-month performance to the end of December. For the full year, UK retail sales rose by just 0.7%, largely driven by food sales, which increased by 3.3%, while non-food sales fell by 1.5%.
December saw non-food sales grow by 4.4%, yet this was below expectations. Online non-food sales rose significantly, up 11.1%, whereas in-store sales grew by just 0.4%.
Helen Dickinson, CEO of the BRC, described 2024 as a difficult year for retailers, marked by weak consumer confidence and challenging economic conditions. She remarked, 'The crucial "golden quarter" failed to give 2024 the send-off retailers were hoping for.'
Looking ahead, Dickinson warned that while retail sales are projected to grow by 1.2% in 2025, the increase may not be sufficient to offset rising costs. Retailers are likely to raise prices and reduce investments in jobs and stores, which could harm high streets and local communities. She urged the government to mitigate these challenges through reforms such as preventing increases in business rates.
The British Chambers of Commerce's recent Quarterly Economic Survey revealed that 55% of businesses expect to raise prices in the coming months, with labour costs identified as the primary driver. This is a notable rise from 39% in the third quarter of 2024.
While the festive season typically brings a boost in shopper confidence, IGD CEO Sarah Bradbury highlighted that December 2024 showed some improvement, with wage growth outpacing inflation. However, the overall performance left much to be desired, reflecting the broader struggles of the retail sector over the past year.
Source: www.retailgazette.co.uk