December gross sales present little pleasure for retailers

New information reveals buyers spent extra in December than final yr, nevertheless it wasn't sufficient to offset an general disappointing yr for retailers.

The British Retail Consortium (BRC) mentioned presents that carried out significantly effectively at Christmas included magnificence introduction calendars, jewelery and AI-enabled know-how.

December's 3.2% enhance was boosted by a giant weekend of Black Friday gross sales that usually characteristic in November's figures.

But it's been a weak 12 months for retailers general, with progress within the final three months of 2024 up simply 0.4% on final yr, and the BRC warned that 2025 stays “challenging” as a result of rising taxes and wage prices. will likely be.

Although many firms haven’t but reported their efficiency over the Christmas interval, the BRC mentioned retailers must deal with rising National Insurance contributions, a better National Living Wage, in addition to a brand new packaging levy within the new yr.

Meanwhile, Barclays reported that client spending on debit and bank cards remained steady in December. It mentioned that individuals are spending cash on leisure and enjoyable however this has been offset by cuts in some important bills.

Over the yr, gross sales in 2024 have been 0.7% greater than these in 2023.

BRC mentioned the last-minute surge in December gross sales got here from Christmas purchasing and the truth that Black Friday gross sales have been included within the month's figures.

BRC chief government Helen Dickinson mentioned: “Food sales were strong over the Christmas period, up slightly on last year, while beauty products, jewelery and electricals performed strongly this year.”

Although slower than the earlier yr, meals gross sales elevated by 3.3% over the yr, and by greater volumes in December.

price range grocery store Lidl mentioned it was probably the most profitable Christmas in its historical pastThe occasion was boosted by individuals shopping for festive meals reminiscent of pigs in blankets and turkeys.

But BRC information confirmed that folks spent much less on different issues – with gross sales of non-food gadgets falling by 1.5% over the yr.

Overall, Ms Dickinson mentioned, the final three months of final yr “failed to provide the farewell to 2024 that retailers were hoping for”, a “challenging year marked by weak consumer confidence and difficult economic conditions”.

Natalie Berg, retail analyst at NBK Retail, mentioned: “Consumers are not out of the woods yet.”

But he added, “Buyers may face higher prices and fewer discounts in the coming months.”

The BRC discovered that over the course of the yr, the variety of individuals visiting brick-and-mortar shops declined for the second yr in a row.

Footfall fell by 2.2% in 2024, with an additional decline in 2023 regardless of measures being taken by some shops. like providing free alcoholTo appeal to consumers.

Even days which are imagined to be bumper gross sales days for retailers have seen low footfall.

In 2024, High streets noticed a 6.2% drop in customer numbers on Boxing DayData collected by MRI Software reveals that occupancy in purchasing facilities has declined by 4.2% in comparison with final yr.

In 2025, the New Year gross sales within the first 5 days of January noticed a decline in footfall, with excessive streets receiving round 4% fewer vacationers than in 2024. MRI's Jenny Matthews mentioned the decline was vital, and was made worse by journey disruption and snowfall.