
Sales growth in all categories of spending in the three months to December rose just 0.4% compared with the previous year, giving a total increase of 0.7% for the full year, according to the British Retail Consortium (BRC), the trade association representing all UK retailers.
Chief executive Helen Dickinson said the final quarter of the year – known traditionally as the ‘Golden Quarter’, as it contains the Christmas shopping period – “failed to give 2024 the send-off retailers had hoped for”.
Retailers will be forced to raise prices and cut jobs, she added, particularly as the sluggish growth is coupled with National Insurance and living wage rises from the Budget, which will increase retail costs.
Food spending, AI tech and beauty advent calendars were spending bright spots
The BRC figures show spending on food sped up in the run-up to Christmas as we focused on festive fare at the expense of gifts. Growth in food spending was 3.3% in the year, compared with a 1.5% decline in non-food overall.
Non-food sales include spending in department stores as well as household and clothing shops. Experts said that some categories of non-food, including beauty products, jewellery and electricals, were popular in December as Christmas gifts, but overall the category had underperformed.

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Linda Ellett, UK head of consumer, retail and leisure at professional services firm KPMG, said that AI-enabled tech and beauty advent calendars had boosted sales, delivering “welcome growth” for retailers.
However, she added that most people were still affected by rising inflation, with the minimal sales growth “reflecting the ongoing careful management of many household budgets during a time when many costs remain at a heightened level”.
Footfall flounders
The sales figures came in conjunction with the BRC report on footfall in physical stores, which also showed a decline.
Visits to UK shopping centres, retail parks and high streets fell 2.2% in December compared with the same time the previous year.
Andrew Goodacre, chief executive officer of the British Independent Retailers Association (BIRA), said the results showed “mounting pressure” on smaller independent businesses.
He said: “These figures paint a worrying picture of the challenges facing independent retailers. The decline in footfall during the crucial Christmas trading period is particularly concerning, as this is typically when retailers need to generate the revenue that will see them through the quieter months ahead.”
Goodacre added that he saw “little reason for optimism” in 2025, due to higher employment costs meaning that independent stores will struggle to remain viable.
“We urgently call on the Government to reconsider the planned business rates increase for small retailers – this could be the difference between survival and closure for many independents on our high streets,” he said.