UK total retail sales saw a 3.2% year on year (YoY) growth in December 2024, surpassing the growth of 1.9% recorded in December 2023, data from the British Retail Consortium (BRC) and KPMG revealed.  

For the entire year of 2024, UK total retail sales grew by 0.7% from the previous year with food sales increasing by 3.3% and non-food sales declining by 1.5%.  

The final quarter, known as the 'Golden Quarter', saw a modest YoY growth of 0.4%. 

In the period covering the four weeks 24 November to 28 December 2024, Food sales in the UK experienced a slower increase of 1.7% compared to the previous year's 6.3%, falling below the three and 12-month average growths.  

Non-food sales witnessed a notable recovery with a 4.4% YoY rise in December, contrasting with a 2.1% dip in December 2023.  

This improvement was higher than the average declines over three and 12 months. In-store non-food sales also rebounded modestly by 0.4%, which was an improvement from the previous year's decrease of 2.9%. 

UK online non-food sales surged by 11.1% during the month, compared to a decline of 0.8% in December 2023, significantly outperforming the average growth rates for both three and 12 months.  

The online penetration rate for non-food items increased to 39.6% from 37.2% in December 2023, surpassing the 12-month average of 36.6%. 

British Retail Consortium chief executive 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. 

“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, meanwhile beauty products, jewellery and electricals made a strong showing under the tree this year.” 

Looking ahead to 2025, the BRC projects an average sales growth of just 1.2%, which is below the anticipated shop price inflation of 1.8%.  

Dickinson added: “This means volumes are likely to fall this year, all while the regulatory and tax burden on retailers will increase costs by £7bn ($8.8bn) from rising National Insurance Contributions, increasing national living wage, confirmed in the Budget, and new packaging levies.  

“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. 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.”