Total spending in the UK grew by just 0.1 per cent year-over-year (YoY) in the fourth quarter (Q4) of 2024, while retail spending declined by 0.2 per cent compared to the same period in 2023, according to data released by Barclays. Clothing, typically a strong performer during the Black Friday and Christmas periods, recorded a decline of 0.8 per cent YoY across Q4.

Only 6 per cent of shoppers planned to upgrade their winter wardrobe, contributing to the sluggish performance. Nearly half (48 per cent) of consumers actively reduced discretionary spending during winter, and Barclays Consumer Spend data indicate a more mindful and value-driven approach to shopping.

Additionally, sustainability concerns influenced purchasing behaviour, with one in three consumers opting for a more sustainable Christmas in 2024, further reducing demand for new clothing. The rise of resale platforms also diverted spending away from new fashion purchases.

With Christmas costs to cover and Black Friday deals to take advantage, non-essential spending rose by 2 per cent in the final three months of 2024. However, this was offset by a -1.9 per cent decline in essential spending, as per the data released by Barclays.

Although many retail sectors did not receive the expected festive boost, cautious optimism remains for 2025. Consumers remain concerned about the UK economy, with 86 per cent worried about inflation and 62 per cent about interest rate rises. However, December’s slight decline in inflation and anticipated interest rate cuts throughout the year may reassure consumers and strengthen economic confidence.

“When we looked back at the spend trends that defined the third quarter of 2024, I, and many other retail experts, were hoping that we would see an uplift in sales. Our consumer research told us that discerning consumers were holding back on making purchases until Black Friday discounts launched, with the expectation that they might make many of their Christmas purchases in this period too. This would give many retail subcategories a much-needed boost after what has been a disappointing year,” said .

“As the year progresses, I am hopeful that a bumper year of sport, a great summer of festivals and concerts (including the Oasis reunion) and a fantastic calendar of releases at cinemas and theatres will continue to drive consumers’ desire to make memories,” added Johnson.

Fibre2Fashion News Desk (SG)