UK: Retail sales unexpectedly drop in December, clothing retailers rebound

Retail sales volumes took an unexpected turn in December, dropping 0.3 percent throughout the month, according to new figures released by the Office for National Statistics (ONS).

This followed a subtle 0.1 percent increase in November, and came despite a rebound in textile clothing and footwear stores, which saw sales rise 4.4 percent, a stark contrast to the sharp 3.5 percent drop the category faced in the month prior.

Compared with pre-covid levels, in February 2020, general retail sales were down 2.5 percent, while for the three months to December 2024, there was also a drop of 0.8 percent.

Online spending reported more positive results, with sales rising 1.5 percent during the period, the first monthly increase since September 2024.

In a statement, Erin Brookes, European retail and consumer lead at Alvarez & Marsal, said December sales were disappointing for retailers, and signalled that they were “already being hit by low consumer confidence on spending”.

She continued: “Despite working hard on both in-store and online shopping experiences and offering some enticing deals, retailers failed to drive spending in the crucial Golden Quarter, setting them up for a difficult start to 2025. Categories including food and non-store retailing were hit as shoppers were more discerning about their Christmas purchases.”