UK Retail Sales unexpectedly declined by 0.3% month-over-month in December 2024, reversing a modest 0.1% rise in November. This decline came despite forecasts predicting a 0.4% increase. The drop was largely driven by a 1.9% fall in food store sales, particularly in supermarkets, though non-food retailers saw some recovery.

Clothing and Christmas Shopping Support Non-Food Sales

While food sales struggled in UK Retail Sales, non-food stores saw a 1.1% increase, with clothing retailers leading the way at 4.4%, rebounding from previous declines. Department stores and household goods stores also performed well, benefiting from strong Christmas shopping activity. These gains helped offset some of the losses in food retail.

Retail Sales Show Mixed Annual Trends

On a year-over-year basis, retail sales grew by 3.6%, suggesting overall resilience in consumer spending despite the monthly dip. However, when excluding fuel, sales dropped 0.6% on the month but still posted a 2.9% annual increase. This indicates that while certain categories struggled in December, broader consumer demand remained steady over the year.

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2024 Retail Performance Shows Signs of Recovery

Looking at the bigger picture, retail sales fell 0.8% in Q4 compared to Q3 but rose 1.9% from the same period in 2023. For the full year, retail sales volumes grew by 0.7%, marking a recovery from the 2.9% decline in 2023 and the 4.1% drop in 2022. While December’s decline raises concerns, the overall trend points to a slow but steady improvement in the retail sector.

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