7th Jan 2025 05:04
(Alliance News) - The Christmas trading period failed to provide UK retailers with cause for celebration as they head into a challenging new year, a survey on Tuesday indicated.
According to the BRC-KPMG retail sales monitor covering the four weeks from November 24 to December 28, total UK retail sales grew by 3.2% on-year in December, compared with growth of 1.9% the prior year. This was above the 3-month and 12-month average growth figures of 0.4% and 0.7% respectively.
The survey noted that November's figures were artificially worsened and December's improved by the later timing of Black Friday this year as it fell into December. However, the reverse was the case in 2023 thus cancelling the effect out for 3-month comparisons.
Food sales rose on-year in December by 1.7%, compared to growth of 6.3% realised the year prior.
Non-food sales increased 4.4% year-on-year in December against a decline of 2.9% last year. The 3-month average decline was 1.1%, with the decline slightly higher at 1.5% for the 12-month average.
In-Store Non-Food sales rose by 0.4% on-year in December, against a 2.9% decline in December 2023. This was above the 3-month average decline of 2.4%, with the 12-month average decline sitting at 2.2%.
Online non-food sales rose 11% year-on-year in the final month of the year, compared to the 0.8% decline seen last year. This was significantly above the 3-month average growth of 1.2% and the 12-month average decline of 0.4%.
Overall for 2024, total UK retail sales grew by 0.7% with food growth up 3.3% and non-food declining by 1.5%.
The three months to December, also known as the 'golden quarter', saw sales growth of 0.4%, with KPMG's UK Head of Consumer, Retail & Leisure Linda Ellett commenting: "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."
British Retail Consortium Chief Executive Helen Dickinson said: "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. Non-food was particularly hard-hit, with sales contracting from the previous year.
"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 GBP7 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."
By Christopher Ward, Alliance News reporter
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