Crucial ‘golden quarter’ fails to save 2024 for retailers
Share:
The crucial “golden quarter” failed to give retailers the send-off to 2024 they were hoping for after a year marked by weak consumer confidence, figures show. Sales were just 0.4% higher over the three months to December than in the same period in 2023, reflecting households’ cautious spending in response to stretched budgets, according to the British Retail Consortium (BRC)-KPMG Retail Sales Monitor.
December, coupled with the Black Friday week at the end of November, delivered a 3.2% year-on-year sales increase, with the likes of AI-enabled technology and beauty advent calendars boosting festive takings. Food sales in December were up 1.7% year on year, a weak showing in light of the previous December’s 6.3% growth and below the 12-month average growth of 3.3%.
For the year overall, total UK retail sales increased by 0.7% on 2023. A 3.3% increase in food sales over the year disguised a dire year for non-food sales, down 1.5% on the year before. BRC 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.
“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.
