December 2024 Retail Sales Drop Despite Festive Season
“According to the December 2024 Retail Sales Index from the Office for National Statistics, 2024 ended on a disappointing note – with a drop in December retail sales volumes of 0.3% compared to November, and a mediocre rise in total spend of just 0.1% from the prior month. This result is all the more shocking when considering that the period in question covers spend from both Black Friday sales and the festive season.
“Consumers did however splash out to some extent over the holiday season, with a solid 6.8% growth on the prior year in retail spend at non-food stores. However, we should take this news with caution. Much of this spend growth can be linked to the equally growing level of consumer debt. In-fact, consumer unsecured debt level grew significantly faster than inflation in 2024.i”
“So far we’ve seen an impressive level of resilience amongst consumers, despite continued cost of living pressures, but cracks are beginning to appear in the form of poor December retail sales results coupled with the growing levels personal debt.”
"We should also observe that sales volumes in what should be one of the strongest sales months of the year remained a full 2.5% below pre-pandemic levels, highlighting the enduring impact of the UK's challenging economic climate.
“Retailers will need to adapt swiftly, focusing on value-driven offerings, seamless shopping experiences, and strategic responses to shifting demands. In this climate, understanding consumer behaviour remains critical, with data-driven insights helping businesses navigate these complex challenges."
