Ryan FowlerFigures from the British Retail Consortium (BRC) highlight ongoing struggles in the retail sector. Figures from the British Retail Consortium (BRC) show that while total retail sales increased by 0.7% in 2024 compared to the previous year, much of this growth was driven by inflation rather than increased consumer spending. Non-food sales fell by 1.5% over the year, highlighting continued pressure on high-street retailers.
The impact on jobs has been significant, with thousands of roles affected as major retailers reduce their physical footprint. Over 8,000 branches of well-known brands have disappeared from the high street, and the brewing industry faces more than 900 jobs at risk due to rising costs and shrinking demand.
The BRC’s data covering the crucial golden quarter from October to December shows a meagre sales growth of 0.4% compared to the same period in 2023. While December alone saw a stronger 3.2% year-on-year increase, much of this was attributed to the later timing of Black Friday, which fell into December rather than November. Food sales increased by 1.7% year on year, but this was well below the 3.3% annual average for 2024, reflecting subdued consumer confidence.
Helen Dickinson, chief executive of the BRC, warned that rising costs will likely lead to further job losses in 2025. “While we project sales growth to average 1.2% in 2025, this is below the projected shop price inflation of 1.8%. This means volumes are likely to fall this year, all while the regulatory and tax burden on retailers will increase costs by £7bn from rising National Insurance contributions, increasing national living wage, confirmed in the Budget, and new packaging levies. With little hope of covering these costs through higher sales, retailers will likely push up prices and cut investment in stores and jobs, harming our high streets and the communities that rely on them.”
Linda Ellett, head of consumer, retail, and leisure at KPMG, noted that despite some positive sales figures in December, the overall picture remains bleak. “December, coupled with Black Friday week at the end of November, delivered welcome sales growth for retailers. However, sales growth during the golden quarter of October to December was minimal, reflecting the ongoing careful management of many household budgets during a time when many costs remain at a heightened level compared to past years.”
Ellett added that in 2025, retailers are expected to increasingly utilise customer data and AI technology to target products and offers more effectively in an effort to boost sales. However, this alone may not be enough to prevent further job losses as retailers grapple with mounting operational costs.
