UK retail sales growth ‘slow’ in final quarter of 2024, data shows

Open the editor’s digest for free

FT editor Rula Khalaf picks her favorite stories in this weekly newsletter.

Growth in UK retail sales spending was “modest” and below the rate of inflation in the final three months of 2024, suggesting shoppers may be wary of shops at the busiest time of year.

In the three months to December, sales were Compared to the same period in 2023, it increased by only 0.4 percent. Economy It was in a technical slump, according to figures published by the British Retail Consortium on Tuesday.

The trade body’s data was not adjusted for inflation, which stood at 2.6 percent in November, indicating that consumers are cutting back on the amount of goods they bought in the period.

Linda Ellett, head of UK consumer, retail and leisure, which helps compile the data, said: “Sales growth during the golden quarter from October to December was modest, reflecting continued prudent management of many household budgets. Many costs remain high compared to previous years.

According to the data, non-food sales were particularly affected by the year-ago contract.

BRC chief executive Helen Dickinson said: “Following a challenging year marked by weak consumer confidence and difficult economic conditions, the crucial ‘golden quarter’ 2024 delivery retailers were hoping for.”

Tuesday’s global sales event is the first consumer spending figures for the shopping season spanning Black Friday and Christmas, adding to signs that the economy will struggle in the final quarter of 2024.

Ministers have gone under. Heavy fire Starting with business in October’s Budget, bosses lamented higher employer National Insurance contributions, as well as a rise in the National Living Wage.

Weakened confidence has been linked to a weak GDP reading as the Bank of England estimates the economy has failed to grow in the final quarter of 2024 despite a strong start.

Growth in UK manufacturing and services activity slowed last month to the slowest since October 2023, according to data published by S&P Global on Monday.

Sales at brick-and-mortar stores were the weakest in the final three months of the year, growing by 0.1 percent in terms of value and falling in terms of volume, according to figures published by accounting firm BDO on Tuesday.

Meanwhile, separate data published by Barclays showed no growth in consumer card spending figures in December, with spending on supermarkets, home improvement stores and fuel falling.

The BRC is forecasting sales growth of 1.2 per cent in 2025, below the projected 1.8 per cent store inflation.

Dickinson said estimates were that the rate could fall this year, adding to pressures on businesses including a rise in the National Living Wage and higher employer National Insurance contributions from April.

“With little hope of covering these costs through higher sales, retailers will raise prices and reduce investment in stores and jobs, hurting our high streets and the communities that rely on them,” she said.