Data shows UK retail sales growth is “minimal” in the final quarter of 2024
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UK retail sales growth was “minimal” and below inflation in the final three months of 2024, suggesting consumers remained cautious during what is typically the busiest time of year for shops.
In the three months to December, sales rose just 0.4 percent compared to the same period in 2023, when the Business was in a technical recession, according to the British Retail Consortium on Tuesday.
The trade association’s data is unadjusted for headline inflation, which was 2.6 percent in November, suggesting consumers reduced the amount of goods they bought during that period.
Linda Ellett, UK head of consumer, retail and leisure at consultancy KPMG, which is helping to compile the data, said: “Sales growth in the golden quarter of October to December was minimal, reflecting the continued careful management of many household budgets at a time Many costs remain at an increased level compared to previous years.”
According to the data, non-food sales were particularly hard hit, declining year-on-year.
BRC chief executive Helen Dickinson said: “After a challenging year marked by weak consumer confidence and difficult economic conditions, the crucial ‘golden quarter’ has not made 2024 the farewell 2024 that retailers had hoped for.”
The first consumer spending figures for the shopping period that includes the global Black Friday and Christmas sales event are due out on Tuesday, reinforcing signs that the economy struggled in the final quarter of 2024.
The ministers have perished heavy fire Since the Budget was published in October, companies have gone out of business as bosses complain about higher employers’ national insurance contributions as well as increases in the national living wage.
Subdued confidence was accompanied by weak GDP readings, as the Bank of England estimates the economy failed to grow in the final quarter of 2024 despite a strong start.
Growth in UK manufacturing and services activity fell to its lowest level since October 2023 last month, according to data released by S&P Global on Monday.
Brick-and-mortar sales were particularly poor in the final three months of the year, recording 0.1 percent growth in value and a decline in volume, according to figures released on Tuesday by accounting firm BDO.
Meanwhile, separate data released by Barclays showed spending on consumer cards did not rise in December, with declines in supermarkets, hardware stores and fuel spending.
The BRC forecasts sales growth of 1.2 percent in 2025, which is below the forecast retail price inflation of 1.8 percent.
Dickinson said the estimates suggested volumes were likely to fall this year, increasing pressure on businesses, including increases in the national living wage and employers’ higher national insurance contributions from April.
“With little hope of recovering these costs through increased sales, retailers are likely to raise prices and cut investment in stores and jobs, damaging our high streets and the communities that rely on them,” she said.
