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UK retail gross sales spending progress was “minimal” and beneath the speed of inflation within the last three months of 2024, suggesting shoppers remained cautious in what is often the busiest interval of the 12 months for outlets.
Within the three months to December, gross sales had been up solely 0.4 per cent from the identical interval in 2023, when the economic system was in a technical recession, in accordance with figures printed by the British Retail Consortium on Tuesday.
The commerce physique’s knowledge shouldn’t be adjusted for headline inflation, which stood at 2.6 per cent in November, indicating shoppers reduce the quantity of products they purchased over the interval.
Linda Ellett, UK head of client, retail and leisure at advisory agency KPMG which helps compile the information, stated: “Gross sales progress in the course of the golden quarter of October to December was minimal, reflecting the continued cautious administration of many family budgets throughout a time when many prices stay at a heightened stage in comparison with previous years.”
Non-food gross sales had been significantly onerous hit, contracting from the 12 months earlier than, in accordance with the information.
BRC chief govt Helen Dickinson stated: “Following a difficult 12 months marked by weak client confidence and tough financial situations, the essential ‘golden quarter’ failed to provide 2024 the send-off retailers had been hoping for.”
Tuesday’s are the primary client spending figures for the buying interval protecting international gross sales occasion Black Friday and Christmas, including to indicators that the economic system struggled within the last quarter of 2024.
Ministers have come below heavy hearth from enterprise because the Finances in October, as bosses bemoan increased employer nationwide insurance coverage contributions, in addition to will increase within the nationwide residing wage.
Subdued confidence has coincided with weak GDP readings, because the Financial institution of England estimates the economic system didn’t develop within the last quarter of 2024 regardless of a robust begin.
Development in UK manufacturing and providers exercise fell final month to the bottom since October 2023, in accordance with knowledge printed by S&P International on Monday.
Gross sales at bricks-and-mortar shops had been particularly poor within the final three months of the 12 months, registering 0.1 per cent progress in worth phrases and falling in quantity phrases, in accordance with figures printed on Tuesday by accountancy agency BDO.
In the meantime, separate knowledge printed by Barclays confirmed no progress in client card spending figures in December, with contractions in supermarkets, dwelling enchancment outlets and expenditure on gas.
The BRC forecasts gross sales progress of 1.2 per cent in 2025, beneath the projected store worth inflation of 1.8 per cent.
Dickinson stated the estimates meant volumes had been more likely to fall this 12 months, including to pressures on companies together with the rise within the nationwide residing wage and better employer nationwide insurance coverage contributions from April.
“With little hope of protecting these prices by way of increased gross sales, retailers will probably push up costs and reduce funding in shops and jobs, harming our excessive streets and the communities that depend on them,” she stated.
