Overview

• Retail sales during the 'golden quarter' of October to December 2024 rose just 0.4% year-on-year, reflecting limited consumer spending amid economic pressures.
• Non-food sales dropped by 1.5% across 2024, while food sales saw modest growth, masking broader struggles in the retail sector.
• Retailers anticipate raising prices and cutting investments in response to increased costs from higher National Insurance contributions, minimum wage hikes, and new packaging levies introduced in the recent budget.
• Consumer spending patterns showed restraint, with households prioritizing essentials and selectively splurging during the holiday season, while entertainment spending saw a modest uptick.
• Economic forecasts for 2025 suggest slow growth, with inflation expected to outpace sales growth, further straining retailers and consumer budgets.