According to the British Retail Consortium (BRC), December food sales were below the 3-month average growth of 2.1%.
For 2024 overall, UK total retail sales increased by 0.7% from 2023, with food growth hitting 3.3%. For the three months to December (the Golden Quarter), sales growth was 0.4% year on year.
UK total retail sales increased by 3.2% year on year in December, against a growth of 1.9% in December 2023. This was above the 3-month average growth of 0.4% and above the 12-month average growth of 0.7%.
Food sales increased by 1.7% year on year in December, against a growth of 6.3% in December 2023. This was below the 3-month average growth of 2.1% and below the 12-month average growth of 3.3%.
Sarah Bradbury, CEO of IGD, said: “Early results for Christmas trading show some positive signs with both grocery sales and volumes up compared to last December, although the rate of growth has slowed compared to 2023. The festive season usually leads to a lift in shopper confidence; December 2024 was no different, with wage growth outstripping inflation, contributing to the uptick this year.
“As is often the case, some shoppers opted to treat themselves by trading-up with some product choices this Christmas. However, with the economic outlook for 2025 remaining relatively weak, and with households facing the prospect of rising bills, this shopper behaviour could be short-lived.”
Helen Dickinson, chief executive at the BRC, said: “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.
“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 £7 billion 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. 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.”
