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Christmas fails to save 2024 trading, according to British Retail Consortium report
The British Retail Consortium (BRC) has revealed that 2024’s so-called "Golden Quarter" failed to save trading in 2024, with "Non-Food" sales – which includes books – being particularly hard hit between 28th November to 28th December.
Helen Dickinson, chief executive of the British Retail Consortium, said that the new figures, released today, showed that the quarter "failed to give 2024 the send-off retailers were hoping for".
However, for 2024 overall, UK Total Retail sales increased by 0.7% from 2023, with Food growth at 3.3%, but the Non-Food decline was 1.5% for the year. For the three months to December (the Golden Quarter), sales growth was 0.4% year-on-year.
The BRC explained that the later timing of Black Friday in 2024 meant it fell into December, rather than November figures, while the reverse was true in 2023. This artificially worsened November figures and improved the December figures, and the effect cancels out for the "three months to December’" figure.
Dickinson added: "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 £7bn from rising National Insurance contributions, an 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. Government must find ways to mitigate this, so that retailers can invest more in growth and jobs, starting with its planned business rates reform where it must ensure that no shop ends up paying higher rates than they do already.”
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Non-Food sales increased by 4.4% year-on-year in December, against a decline of 2.1% in December 2023. This was above the three-month average decline of 1.1% and above the 12-month average decline of 1.5%. In-Store Non-Food sales increased by 0.4% year-on-year in December, against a decline of 2.9% in December 2023. This was above the three-month average decline of 2.4% and above the 12-month average decline of 2.2%.
Online Non-Food sales increased by 11.1% year-on-year in December, against a decline of 0.8% in December 2023. This was above the three-month average growth of 1.2% and above the 12-month average decline of 0.4%.
Linda Ellett, UK head of consumer, retail and leisure, KPMG, said: "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.
"In 2025, we will see retailers increasingly utilising customer data and AI technology to deliver increased personalisation when it comes to targeting products and offers to their current, and potential, customers."
