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UK: Golden Quarter fails to salvage 2024 trade

Jan 16, 2025 United Kingdom

Total UK retail sales grew by 0.7% in 2024 as compared to the previous year, as the Golden Quarter recorded sales growth of just 0.4% year-on-year, the British Retail Consortium (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. 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 (…)”, commented Helen Dickinson, Chief Executive at the British Retail Consortium.

According to the British Retail Consortium (BRC), 2024 total retail sales increased by 0.7% from 2023, including a food growth of 3.3% and a non-food decline of 1.5%. While total retail sales rose by 3.2% in December – as compared with growth of 1.9% in the same month a year earlier, and above the 3-month average growth of 0.4% and the 12-month average growth of 0.7% – sales growth for the Golden Quarter was only 0.4% year-on-year.

“December, coupled with Black Friday week at the end of November, delivered welcome sales growth for retailers”, said Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG. “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”, she added.

For 2025, the BRC forecasts average sales growth of 1.2%, below the projected shop price inflation of 1.8%. In practical terms, this means that volumes are likely to fall this year as the regulatory and tax burden on retailers outlined in the Budget will increase costs.

“With little hope of recovering these costs through increased sales, retailers are likely to increase prices and reduce investment in stores and jobs, damaging our high streets and the communities that rely on them”, said Dickinson, calling on the government to help mitigate the situation.

Image Credits: retailgazette.co.uk

United Kingdom Organisations Retail Sales