UK retailers show resilience despite December headwinds

Non-food retailers demonstrated unexpected strength in December 2024, despite overall retail sales declining 0.3 per cent month-on-month, according to data from the Office for National Statistics.

The sector posted a 1.1 per cent increase in sales volumes, driven by a particularly strong performance in clothing, which saw a 4.4 per cent rise. The figures suggest consumers remained willing to spend during key seasonal events, even as cost of living pressures persisted.

"What we're seeing is increasingly strategic consumer behaviour," Max Etheridge, Director of Sales UK and Ireland at Voyado, tells FashionUnited. "Shoppers are concentrating their spending around peak periods like Christmas and Black Friday, making careful choices about when and where they deploy their resources."

The digital channel continued to gain prominence, with online sales accounting for 27 per cent of total retail revenue in December, up from 26.5 per cent in November. The 1.5 per cent monthly increase in online spending values reflects growing consumer preference for digital convenience during busy periods.

The broader retail sector showed encouraging signs of recovery, with fourth-quarter sales rising 1.9 per cent compared to the same period in 2023. This growth comes after a challenging year for many retailers, particularly in the autumn months when clothing sales experienced consecutive declines.

According to Etheridge, retailers who succeed in 2025 will be those who embrace data-driven personalisation and seamless omnichannel experiences. "The focus needs to shift from pure discounting to building meaningful customer relationships through relevant, personalised engagement," he notes.

While economic headwinds persist, the December data suggests opportunities exist for retailers who can effectively blend physical and digital offerings while maintaining strong seasonal execution. Success in the coming year will likely depend on retailers' ability to adapt to evolving consumer preferences and build lasting customer relationships.