Despite the sales period reported encompassing Black Friday, Christmas retail business failed to save 2024 trading, reports BRC-KPMG in its latest Retail Sales Monitor.
UK total retail sales were up +3.2% YoY in December (against growth of +1.9% in December 2023) and sales of non-food products up by +4.4% (against a decline of -2.1% in December 2023).
In-store non-food sales increased by +0.4% YoY, while online non-food sales increased by +11.1% (the later timing of Black Friday in 2024 meant it fell into December's, rather than November's figures, while the reverse was true in 2023). The online penetration rate increased to 39.6%, from 37.2% in December 2023.
For 2024 overall, UK total retail sales increased by +0.7% from 2023. Food growth was +3.3%, and the non-food decline was -1.5% for the year. For the three months to December (the Golden Quarter), sales growth was just +0.4% YoY.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), says: “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.
"Non-food was particularly hard-hit, with sales contracting from the previous year. Food sales fared better over the Christmas period, ticking up slightly from the previous year, meanwhile beauty products, jewellery and electricals made a strong showing under the tree this year.
“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 £7b from rising National Insurance Contributions, increasing national living wage, confirmed in the Budget, and new packaging levies. With little hope of covering these costs through higher sales, retailers will likely push up prices and cut investment in stores and jobs, harming our high streets and the communities that rely on them."
Linda Ellett, UK head of Consumer, Retail & Leisure, KPMG, adds: “With Black Friday falling as late as it did, this year it was part of the Christmas shopping season even more so than in previous years.
“December, coupled with Black Friday week at the end of November, delivered welcome sales growth for retailers. Computing and mobile phones, and beauty products, particularly saw sizeable jumps in sales both in-store and online, with the likes of AI-enabled tech and beauty advent calendars boosting festive takings.
"However, sales growth during the golden quarter of October to December was minimal, reflecting the ongoing careful management of many household budgets during a time when many costs remain at a heightened level compared to past years."
