Retail sales drop in December despite uplift in clothing and footwear

UK retail sales declined last month in a blow to the sector during the all-important festive shopping season, despite an increase in clothing and footwear sales in December. 

The volume of retail sales – which measures the quantity bought – fell by 0.3% last month, the Office for National Statistics said.

It follows a 0.1% increase in November, revised down from a previous estimate of a 0.2% rise.

Analysts had been expecting sales to rise by 0.4% in December, with shoppers stocking up ahead of Christmas.

A weak month for supermarkets helped drag on overall volumes, with food store sales falling by 1.9% to hit the lowest level in more than a decade.

On the other hand, it was a stronger month for clothes and shoe shops which saw sales surge by 4.4% in December, reflecting a boom in Christmas shopping amid heightened sales activity over the festive season.

Department stores and household goods stores also increased over the month, which retailers attributed to stronger Christmas sales.

ONS Senior Statistician Hannah Finselbach said: "Retail sales fell in December following last month’s slight increase. This was driven by a very poor month for food sales, which sank to their lowest level since 2013, with supermarkets particularly affected.

"It was a better month for clothing shops and household goods stores, where retailers reported strong Christmas trading.

"With the timing of Black Friday falling within these latest data, our figures when not adjusted for seasonal spending show overall retail sales grew more strongly than in recent Decembers."

Kris Hamer, Director of Insight at the British Retail Consortium, said: "In non-food, electricals, beauty and books made for popular presents.

"Meanwhile, sales of furniture and other large-ticket items were hard hit as families continued to think twice before making larger purchases, and clothing and footwear sales remained muted."

Oliver Vernon-Harcourt, Head of Retail at Deloitte, said: "Festive spending failed to provide a much-needed boost to retail in the latter part of 2024, with sales falling both month-on-month and quarterly.

"A boost to clothing could be explained by a cold snap of weather and gift giving, but this was offset by a surprisingly poor performance for food – despite many grocers reporting strong festive results.

He added that retailers were set to come under pressure from new costs from the autumn Budget facing the industry in 2025.

"The priority for retail leaders now revolves around combatting looming cost increases, particularly from rising National Insurance Contributions.

"Consumer confidence is showing signs of resilience, but isn’t recovering at the rate needed to lift spending. Therefore, retailers must remain focused on navigating these upcoming challenges to ensure long-term profitability and stability in a very challenging environment."