UK retail sales showed a modest increase in December 2024, but the crucial Christmas period failed to provide the boost retailers were hoping for, the latest figures from the British Retail Consortium (BRC) show.

Total retail sales grew by 3.2% year-on-year, compared to a 1.9% rise in December 2023. However, the shift of Black Friday into December this year impacted the overall figures.

“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. This effect cancels out for the ‘three month to December’ figure” said the BRC.

For the year, UK retail sales rose by just 0.7%, driven mainly by food sales, which grew 3.3%. Non-food sales, however, declined by 1.5%.

While non-food sales increased by 4.4% in December, the overall performance was still below expectations. Online non-food sales saw a significant rise of 11.1%, while in-store sales grew by just 0.4%.

BRC CEO Helen Dickinson 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.”

During the period, the food sector saw modest growth, with grocery sales up compared to 2023, although at a slower rate.

IGD CEO Sarah Bradbury noted: “The festive season usually leads to a lift in shopper confidence; December 2024 was no different, with wage growth outstripping inflation.”

Looking ahead, Dickinson cautioned that while 2025 is expected to see a 1.2% growth in sales, it may not cover rising costs, leading retailers to raise prices and reduce investment.

“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 ” she said.

“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.”

Yesterday (6 January) the British Chambers of Commerce’s latest Quarterly Economic Survey found 55% of business expect to increase prices in the next three months, with labour costs identified as the main driver. This compares with 39% in the third quarter of 2024.

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