UK clothing sales bucked an overall retail sales slowdown in December with industry onlookers urging retailers to start adapting to changing market conditions.

According to the Office of National Statistics’ latest figures, retail sales volumes (quantity bought) are estimated to have fallen by 0.3% in December 2024, following a small rise of 0.1% in November 2024.

Falls in supermarkets were partly offset by a rise in non-food stores, such as clothing retailers, which rebounded from falls in recent months.

Looking at the quarter, sales volumes fell by 0.8% in Quarter 4 (October to December) 2024 compared with Quarter 3 (July to September) 2024 but rose by 1.9% compared with Quarter 4 2023.

Seasonally adjusted sales volumes fell by 0.3% during December 2024, following a 0.1% rise in November. Over the year to December 2024, sales volumes rose by 3.6%, following a large fall in December 2023.

When compared with their pre-coronavirus (COVID-19) pandemic level in February 2020, volumes were down by 2.5%.

More broadly, there was a 0.8% fall across the three months to December 2024 (Quarter 4), when compared with the three months to September 2024 (Quarter 3). When comparing with the same period last year, there was a 1.9% rise.

Food stores sales volumes fell 1.9% on the month, putting index levels at their lowest since April 2013. The monthly fall was strongest within supermarkets.

This fall was partly offset by a rise in non-food stores sales volumes (the total of department, clothing, household and other non-food stores) which increased by 1.1% over the month. Clothing stores had the largest upward contribution, rising by 4.4% in December, rebounding from falls of 3.5% in November 2024 and 3.3% in October 2024. Department stores and household goods stores also rose over the month which retailers attributed to stronger Christmas sales.

Industry reaction to December retail figures

Silvia Rindone, EY UK&I Retail Lead: “Today’s figures demonstrate the growing divide between retailers who have adapted to changing market conditions and those who have not. The latter are increasingly falling behind as consumers become more selective about their spending.

“Looking ahead, there are several challenges on the horizon in 2025, with retailers predicting declines in sales volumes and increased tax burdens. Rises in National Insurance and the national living wage will impact business costs, prompting many retailers to consider price increases to offset these overheads.

“Despite supressed consumer confidence, many retailers are delivering strong sales and volume growth. These are driven by clarity of their proposition, a deep understanding of their customers’ needs and excellent operational skills. Retailers that have failed to invest in their capabilities or proposition are more likely to be struggling and its unlikely consumer demand will increase quickly enough for many.”

Kris Hamer, Director of Insight at the British Retail Consortium: “Retail sales picked up in December, but this unfortunately did not offset the shaky start to the ‘Golden Quarter’. In non-food, electricals, beauty and books made for popular presents. Meanwhile, furniture sales and other large ticket items were hard hit as families continued to think twice before making larger purchases, and clothing and footwear sales remained muted.

“While retailers welcome this boost to sales, it will barely touch the sides of the £7bn ($8.55bn) in new costs from the Budget facing the industry in 2025. Higher employer national insurance contributions, higher national living wage, and a new packaging levy will heap pressure on an industry that is already paying more than its fair share of tax. With retailers doing all they can to absorb existing costs, two thirds of CFOs report they are left with little choice but to increase prices, and reduce investment in jobs and shops. To mitigate this, Government must ensure that its proposed business rates reform does not result in any shop paying higher rates than they already do.”

Nicholas Found, Head of Commercial Content at Retail Economics: “Retail sales disappointed over the golden quarter, reflecting a tough trading environment. 

“Cautious spending defined the festive season, slowing momentum in retail. Scars from the cost-of-living crisis saw fragile consumer confidence persist in December as shoppers adapt to higher prices, prioritising value during the Christmas period.

“Shoppers held out for promotions and turned to flexible payment options, including buy now pay later services, to stretch their budgets. Retailers that outperformed were nimble in response to demand and invested in omnichannel operations, supporting online sales growing ahead of store sales in December.

“With retailers typically operating on low single-digit margins, weak growth leaves little room for manoeuvre as employer tax increases loom. This will inevitably widen the gap between retailers who can invest in operational resilience and those that cannot afford to – risking higher prices, hiring freezes and store closures.”

Deann Evans, Managing Director, EMEA, Shopify: Following an uplift in November, the industry will be disappointed to see a fall in December sales – especially after what was a successful Black Friday Cyber Monday weekend (BFCM). Whilst our proprietary product data for December suggests a drive around festive hosting (with sales of cocktail & barware tool sets and party games all increasing), there are also indicators that consumers have begun to look ahead to January. Garment steamers (+130%), ironing boards (+107%) and cleaning gloves (+99%) all saw large increases in sales, with consumers perhaps preparing to act on their new year’s resolutions and start 2025 with a spring clean reset. This could also indicate a shift amongst consumers in focusing their January spending on at-home activities versus spending out – which offers retailers valuable insight in how best to meet consumer demand this month and make January a successful start to the year. 

Jim Rudall, Head of EMEA, Intuit Mailchimp: Late November and December represent a critical period for retailers, making the latest ONS figures a cause for concern – especially given the significant investments many UK businesses made in audience engagement during this time.

As we move through January, retailers must build a year-round strategy and prioritise maintaining positive marketing habits, such as integrating email with SMS to ensure consistent, multichannel engagement, and cultivating strong relationships with customers. A key tactic will be leveraging personalisation at scale — a strategy supported by findings in our Brand Trust Report, which revealed that 61% of UK consumers favour personalised content compared to just 11% who dislike it. By focusing on personalisation and multichannel engagement, businesses can position themselves to build lasting customer loyalty and unlock long-term growth in 2025.

Matt Barker, CEO of MPB: “It’s disappointing to see overall sales decrease, which points to the tough economic conditions households are continuing to endure. For those seeking to save money – while also making a positive impact on the environment – participating in the circular economy by buying used could represent a smart and sustainable alternative.

“Last Christmas, two in five adults planned to give at least one ‘used’ present – with those shoppers saving money, extending product lifespans and minimising their environmental impact as a consequence.

“However, a significant proportion of UK adults remain unaware of the environmental and financial benefits of buying used, and we encourage more people to consider buying and gifting used items as a more thoughtful, sustainable choice in 2025. Today, a wide range of high-quality used products offer excellent alternatives to new, helping people save money and reducing the environmental costs of manufacturing and waste.”

Greg Zakowicz, senior ecommerce expert at Omnisend: “Retailers would have been hoping for a more upbeat end to 2024, during what is traditionally the busiest shopping period of the year.

“But it’s clear that persistent cost-of-living challenges have impacted how much Brits are willing to spend on Christmas shopping.

“Looking ahead, the retail sector is likely to face continued volatility as economic pressures persist. A lack of disposable income is already evident, holding many households back from fully engaging in the January sales.

“While ecommerce continues to show resilience in the face of economic challenges, the Centre for Retail Research predicts that 17,350 retail sites could shut down in 2025, leading to substantial job losses.

“H&M Group, for instance, recently announced it is closing its Monki chain, which had limited online presence. Shoe Zone has also announced store closures in the past month due to rising costs and tough trading conditions, reflecting the difficulties faced by businesses that rely heavily on physical stores.

“Interestingly, over half of UK retailers have indicated plans to rely more heavily on AI in 2025, adopting tools like chatbots and warehouse automation to cut costs. While this approach risks alienating online shoppers who value exceptional customer service, it has the potential to unlock significant growth if implemented thoughtfully.”