December sales provide little cheer for retailers

Consumers spent extra in December in contrast with the 12 months earlier than however it wasn’t sufficient to make up for an total lacklustre 12 months for retailers, new figures counsel.

Doing notably properly over Christmas have been presents together with magnificence introduction calendars, jewelry and AI-enabled tech, the British Retail Consortium (BRC) stated.

December’s development of three.2% was boosted by an enormous weekend of Black Friday gross sales, that are usually included in November’s figures.

However with development for the final three months of 2024 being solely 0.4% larger than the earlier 12 months, it finishes a weak 12 months for retailers total, and the BRC warned that 2025 can be “difficult” as a result of rising taxes and wage prices.

Though many corporations are but to report on their efficiency over the Christmas interval, the BRC stated the brand new 12 months would see retailers grapple with rising Nationwide Insurance coverage Contributions, a better Nationwide Dwelling Wage, in addition to new packaging levies.

In the meantime, Barclays reported that client spending on debit and bank cards was flat in December. It stated individuals have been forking out on leisure and leisure however this was offset by cutbacks in some important spending.

Throughout the 12 months, gross sales in 2024 have been 0.7% larger than in 2023.

The BRC stated a last-minute bump in December gross sales got here from Christmas procuring and the truth that Black Friday sale was included within the month’s figures.

“Meals gross sales fared higher over the Christmas interval, ticking up barely from the earlier 12 months, in the meantime magnificence merchandise, jewelry and electricals made a robust exhibiting beneath the tree this 12 months,” stated the BRC’s chief govt Helen Dickinson.

Though slower than the 12 months earlier than, meals gross sales elevated over the 12 months by 3.3%, and by a better quantity in December.

Finances grocery store Lidl said it had the most successful Christmas in its history, boosted by individuals shopping for festive meals corresponding to pigs in blankets and turkey.

However the BRC’s figures confirmed individuals spent much less on different issues – gross sales for non-food objects over the 12 months fell by 1.5%.

General, the final three months of final 12 months “failed to offer 2024 the send-off retailers have been hoping for”, in a “difficult 12 months marked by weak client confidence and tough financial situations”, Ms Dickinson stated.

Retail analyst Natalie Berg from NBK Retail stated: “Customers aren’t battening down the hatches simply but.”

However she added: “Consumers will possible face larger costs and fewer reductions within the coming months.”

All year long, the variety of individuals going to bricks-and-mortar outlets fell for the second 12 months in a row, the BRC discovered.

Footfall dropped 2.2% in 2024, having additionally fallen in 2023, regardless of some outlets taking measures, such as offering free wine, to draw consumers.

Even days thought-about to be bumper gross sales days for retailers have seen decrease footfall.

In 2024, Boxing Day saw a 6.2% drop in visitors to High Streets, and a drop of 4.2% to procuring centres in contrast with the 12 months earlier than, information gathered by MRI Software program confirmed.

In 2025, New Yr gross sales within the first 5 days of January noticed a decline in footfall, with excessive streets seeing virtually 4% fewer guests than 2024. MRI’s Jenni Matthews stated the decline was vital, and worsened by journey disruptions and snowfall.