UK retail sales dropped in the lead up to Christmas, says ONS

Retail sales volumes fell 0.3% in December, according to the latest ONS retail sales data, after a small increase of 0.1% during the month of November.

During the quarter as a whole, sales volumes fell 0.8% between October and December, compared to the third quarter to September 2024. Despite this, sales were up 1.9% compared to the fourth quarter in 2023.

Food stores sales were down 1.9% during the month, with the strongest fall being across supermarkets. Sale volumes also fell in specialist stores such as butchers, bakers and vape shops.

ONS said the fall was “partly offset” by an increase in non-food stores sales volumes which were up 1.1% in December.

Clothing stores suprisingly had the largest upward trend and sales volumes rose 4.4% during the month, rebounding from a fall of 3.5% in the previous month.

A strong Christmas sales performance was also credited to a stronger increase across department stores and houeshold goods stores.

Online spend was also up 1.5% during December, the first monthly increase since September last year.

Nextiva vice president of international David Paulding said: “Christmas hasn’t been the golden goose that retailers had hoped for. While sales promotions tempted some consumers to spend, they failed to lure customers across most categories to spend bigger than last year. There was some success; clothing stores saw sales volumes rise by 4.4% in December, up from 3.5% in November 2024. Online sales also saw some growth but overall, the final quarter of 2024 fell compared to Q3 2024.

“The lacklustre results are a triple negative for retailers as they go into 2025. The softer close to 2024, will be compounded by the growing tax burden levied by the increase in the employer’s national insurance contributions. Add to that, rising customer expectations and brands face a tough 2025.

“For businesses to stand-out, they need great choice, competitive pricing and stellar customer service. It is the brands that can connect with their customers, no matter the channel – that will keep customers spending.”