UK Christmas shopping season fails to meet expectations, leading to predictions of price increases in 2025.
Shop prices will rise in 2025 as the key Christmas trading period failed to meet retailers' expectations, according to industry data. Shop sales grew just 0.4% in the so-called golden quarter, the critical three shopping months from October to December, according to the British Retail Consortium (BRC) and big four accounting company KPMG. Many retailers rely on trade during this period to see them through tougher months such as January and February.
Some make most of their yearly revenue over Christmas. The minimal growth came amid weak consumer confidence and difficult economic conditions, the lobby group said, and 'reflected the ongoing careful management of many household budgets', KPMG's UK head of consumer, retail and leisure Linda Ellett said. Non-food sales were the worst hit in the four weeks up to 28 December, figures from the BRC showed and were actually less than last year, contracting 1.5%. What were people buying? Food sales grew 3.3% across all of 2024, compared to 2023. In the festive period beauty products, jewellery and electricals did well, the BRC's chief executive Helen Dickinson said. AI-enabled tech and beauty advent calendars boosted festive takings, Ms Ellett said. What it means for next year With employer costs due to rise in April as the minimum wage and employers' national insurance contributions are upped, businesses will face higher wage bills. The BRC estimates there is 'little hope' of covering these costs through higher sales, so retailers will likely push up prices and cut investment in stores and jobs, 'harming our high streets and the communities that rely on them', Ms Dickinson said
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