UK retailers may have to cut thousands of jobs after bleak Christmas
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British Retail Consortium figures show sales growth close to flatlining, as card spending fails to rise. Britain’s largest retailers are warning they could be forced to cut thousands of jobs this year as the industry braces for higher taxes and employment costs after a bleak Christmas shopping season.
In the latest sign of tough trading conditions on the high street, figures from the British Retail Consortium (BRC) show sales growth over the “golden quarter” between October and December came close to flatlining. For the three months to December – when many retailers make the bulk of their annual profits – the BRC said total UK retail sales growth was 0.4% year on year as shoppers prioritised spending on food and drink over the festive season. Once inflation was factored in, retail sales by volume slid over the year.
For 2024 overall, total sales increased by 0.7% from 2023, highlighting a cautious approach to consumer spending as households continue to grapple with higher prices after the worst inflation shock in decades. Separate figures from Barclays show zero growth in consumer card spending in December, as households cut back on essential items and pub and restaurant meals in favour of spending on experiences.
Helen Dickinson, the chief executive of the BRC, said retailers were poised for a challenging year as they faced £7bn of additional costs from tax increases and new regulations planned by the government. Pressure is mounting on Keir Starmer’s government amid signs of a worsening slowdown in the British economy, with growth on track to have flatlined for the entire second half of 2024.
