Skip to content
Search
AI Powered
Latest Stories

Retail sales decline in December, driven by drop in food stores

A woman browses some of the Christmas gift ideas in a store on December 13, 2024 in London, England.

A woman browses some of the Christmas gift ideas in a store on December 13, 2024 in London, England.

Photo by Leon Neal/Getty Images

The UK retail sales volumes fell by 0.3 per cent in December 2024, with food stores experiencing a significant 1.9 per cent decline, according to the latest Office for National Statistics (ONS) figures.

Falls in supermarkets were partly offset by a rise in non-food stores, such as clothing retailers, which rebounded from falls in recent months with a 4.4 per cent surge, and department stores that saw a modest 1.2 per cent increase.


Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, expressed concern about the lackluster Golden Quarter. “Despite record-breaking sales for some retailers over Christmas, plus the later than usual Black Friday event, it was a disappointing end to 2024 for the sector…. Many retailers had little choice but to launch their Boxing Day discounting early to maximise sales and clear as much stock as possible ahead of the seasonal slowdown in January.”

Baker noted that while year-on-year retail sales (excluding fuel) rose by 2.9 per cent due to weak figures from December 2023, the absence of a "golden" Christmas boost could leave many retailers struggling.

“Retailers are resilient, but the constant bombardment of challenges means many are in ‘fight or flight’ mode which impacts pricing, people decisions, strategic investment and future growth,” she warned.

“While the longer-term economic outlook is one of cautious optimism, the hope is that consumer confidence continues building. Once this happens, shoppers should return to the high street and provide a boost to retail spending, which the sector is pinning its hopes on.”

Economist Thomas Pugh of RSM UK pointed to stagnation in the broader economy as a key factor. “The weakness in retail sales volumes in December suggests that the stagnation which has gripped the UK economy since the summer continued into the final month of the year. Admittedly, the ONS seasonal adjustment process around Black Friday can play havoc with the retail sales data at this time of year, but even averaging November and December to take account for that, retail sales volumes dropped.”

However, Pugh identified a potential bright spot in discretionary spending, highlighted by the rise in clothing sales. Looking ahead, he anticipates a gradual rebound in consumer confidence driven by wage growth and possible interest rate cuts, although he cautioned that cautious consumers might opt to save rather than spend.

“An interest rate cut in February should help consumer confidence and incomes rebound. But the risks are clearly building that cautious consumers choose to save rather than spend increases in income, raising the risk of weaker growth continuing through the first half of this year,” he said.

Silvia Rindone, EY UK&I Retail Lead, highlighted the challenges and disparities within the sector.

“Despite the overall mixed results, several food retailers saw record sales in December driven by growth in premium own-label products as consumers opted to splash out over the festive season,” she noted.

“Today’s figures demonstrate the growing divide between retailers who have adapted to changing market conditions and those who have not. The latter are increasingly falling behind as consumers become more selective about their spending.”

The rise in online spending, up 1.5 per cent in December, also reflected the evolving shopping habits of consumers. Rindone stressed the importance of retailers investing in their capabilities and understanding customer needs.

“Despite supressed consumer confidence, many retailers are delivering strong sales and volume growth. These are driven by clarity of their proposition, a deep understanding of their customers’ needs and excellent operational skills. Retailers that have failed to invest in their capabilities or proposition are more likely to be struggling and its unlikely consumer demand will increase quickly enough for many,” she said.

More for you

​New Co-op report reveals in disparity in apprenticeship scheme by small business

New Co-op report reveals in disparity in apprentices

iStock image

Small businesses lag in offering apprenticeships

Small businesses are "18 times less likely" to offer an apprenticeship scheme as compared to large businesses, a recent report has claimed, adding that some small businesses are not taking proactive steps to recruit apprentices from lower socioeconomic backgrounds.

Co-op in a report released on Monday (10) points out how more than a third (38 per cent) of school leavers face a lack of apprenticeship opportunities in their local area.

Keep ReadingShow less
Retail sales in January 2025

Retail sales in January 2025

iStock image

Retail sales surge in January despite stormy weather

January sales kicked off a solid month for retail with stores delivering their strongest growth in almost two years, shows industry report released today (11).

According to retail body British Retail Consortium (BRC), UK total retail sales increased by 2.6 per cent year on year in January, against a growth of 1.2 per cent in January 2024. This was above the 3-month average growth of 1.1 per cent and above the 12-month average growth of 0.8 per cent.

Keep ReadingShow less
​Kash Retail donates £1,000 through Nisa’s charity to support Darlington Pride Festival

Kash Retail donates £1,000 through Nisa’s charity.

NISA

KASH Retail joins forces with Nisa charity to support Darlington Pride Festival

KASH Retail, operator of Nisa Local Fenby Avenue in Darlington, has generously donated £1,000 through Nisa’s Making a Difference Locally (MADL) Pride Pot to support this year’s Darlington Pride Festival.

The donation, inspired by store team member Gavin Morrison, who performs as drag queen Georgina Sparks, will provide a valuable boost to the event, helping organisers deliver an inclusive and vibrant celebration for the local community.

Keep ReadingShow less
Spanish fine food importer Mevalco supports MAZI Project charity

Spanish fine food importer Mevalco supports MAZI Project charity

Mevalco, the Bristol-based Spanish distributor which includes some of the UK’s most talented high-profile chefs and fine dining establishments amongst its customers, has announced a collaboration with The MAZI Project – the Bristol youth-led charity, which was founded in 2019 and nourishes vulnerable 16–25-year-olds through food.

The MAZI Project supports care leavers, and young asylum seekers, as well as young people recovering from homelessness or who may be fleeing domestic violence. Not only does The MAZI Project educate the next generation in food culture and health, but it empowers young people by helping them learn the trade and find job opportunities within the catering industry.

Keep ReadingShow less
​Privately SA's AgeAI solution Prevents Underage Vaping

Privately SA's AgeAI solution

Privately SA

Efficient AI tool deter underage vape buyers, avoids customer conflict

Deployment of an AI-enabled age identifying tool can prevent underage vaping to a great extent thus avoiding conflicting situations as well, a recent report has shown, highlighting the scale of minors vaping in the UK and the role of that such solutions can play to deter underage sales in a busy store.

According to new data from Privately SA, the deployments of AgeAI solution in UK vape stores prevent on average eight minor customers per store per day from purchasing vapes.

Keep ReadingShow less