The vital “golden quarter” fell short to offer merchants the send-off to 2024 they were wishing for after a year noted by weak customer self-confidence, numbers reveal.
Sales were simply 0.4% greater over the 3 months to December than in the exact same duration in 2023, showing families’ mindful costs in feedback to extended spending plans, according to the British Retail Consortium (BRC)- KPMG Retail Sales Monitor.
December, paired with the Black Friday week at the end of November, supplied a 3.2% year-on-year sales rise, with the similarity AI-enabled modern technology and charm development schedules increasing cheery yields.
Food sales in December were up 1.7% year on year, a weak proving taking into account the previous December’s 6.3% development and listed below the 12-month ordinary development of 3.3%.
For the year generally, overall UK retail sales raised by 0.7% on 2023.
A 3.3% rise in food sales for many years camouflaged an alarming year for non-food sales, down 1.5% on the year prior to.
BRC president Helen Dickinson stated: “Following a challenging year marked by weak consumer confidence and difficult economic conditions, the crucial ‘golden quarter’ failed to give 2024 the send-off retailers were hoping for.
“While we project sales growth to average 1.2% in 2025, this is below the projected shop price inflation of 1.8%. This means volumes are likely to fall this year, all while the regulatory and tax burden on retailers will increase costs by £7 billion from rising national insurance contributions, increasing national living wage, confirmed in the Budget, and new packaging levies.
“With little hope of covering these costs through higher sales, retailers will likely push up prices and cut investment in stores and jobs, harming our high streets and the communities that rely on them.”
Linda Ellett, UK head of customer, retail and recreation markets at KPMG, stated: “With Black Friday falling as late as it did, this year it was part of the Christmas shopping season even more so than in previous years.
“However, sales growth during the golden quarter of October to December was minimal, reflecting the ongoing careful management of many household budgets during a time when many costs remain at a heightened level compared to past years.”
Sarah Bradbury, president of experts IGD, stated: “Early results for Christmas trading show some positive signs, with both grocery sales and volumes up compared to last December, although the rate of growth has slowed compared to 2023.
“As is often the case, some shoppers opted to treat themselves by trading up with some product choices this Christmas. However, with the economic outlook for 2025 remaining relatively weak, and with households facing the prospect of rising bills, this shopper behaviour could be short-lived.”
