UK high streets saw a drop in sales in December as shoppers decided to take a cautious approach to Christmas spending, according to data from Rendle Intelligence and Insights shared exclusively with Retail Week.
Sales in UK towns and city centres decreased by 7.9% year on year in December, following a 3.8% annual drop in spending in December 2023.
The data shows the drop in December spend was caused by a 7% drop in the number of customers purchasing. However, the average transaction value (ATV) only declined 0.7%.
In December 2023, ATV dropped 2.4% year-on-year while customer numbers rose 1.5% annually.
Sales declined across fashion, food & drink, general retail, grocery and health & beauty year-on-year. In 2024, food and drink sales saw the largest decline in of 5.9%, while health and beauty saw a sales decline of 4.6%.
Grocery recorded the largest year-on-year decline in December of 8.3%, contrasted with a 2.5% annual rise in December 2023.
Rendle Intelligence and Insights chief executive Diane Wehrle said: “A second consecutive year of spending decline clearly reflects the ongoing cost pressures faced by households, following a prolonged period of very high inflation and continued economic uncertainty.
“With fewer customers making purchases whilst the average value of each transaction remained level on last year, there is clearly a polarisation between consumers who are spending and those who are not, with those who are spending purchasing higher priced products.”
“These results could also mark the start of a shift in attitudes towards Christmas, with consumers who are cash strapped choosing to not spend for the sake of it, spending more of their Christmas budget towards grocery, experiences and food & drink. We could be seeing the start of a whole new attitude towards Christmas spending, a worry for retailers who traditionally rely on the ‘golden quarter’.”
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