Deloitte comments on ONS retail sales

Commenting on today’s ONS retail sales figures, Oliver Vernon-Harcourt, head of retail at Deloitte, said:

“Festive spending failed to provide a much-needed boost to retail in the latter part of 2024, with sales falling both month-on-month and quarterly. This worse-than-expected performance for the sector, particularly in food, reflects how nervous consumers are still making cut backs despite the easing of inflationary pressures. A boost to clothing could be explained by a cold snap of weather and gift giving, but this was offset by a surprisingly poor performance for food – despite many grocers reporting strong festive results.

"Our Deloitte Consumer Tracker data shows that one in two consumers were generally more frugal with their December spending and consciously cut down on luxuries.  The priority for retail leaders now revolves around combatting looming cost increases, particularly from rising National Insurance Contributions. Consumer confidence is showing signs of resilience, but isn’t recovering at the rate needed to lift spending. Therefore, retailers must remain focused on navigating these upcoming challenges to ensure long-term profitability and stability in a very challenging environment."