UK Clothing & Footwear Sector Report

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UK Clothing & Footwear Sector Report summary

January 2025

Period covered: Period covered: 24 November – 28 December 2024

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30-day membership trial now.

Clothing & Footwear Sales

Clothing sales rose by xx% YoY, while Footwear sales rose xx% YoY in December, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted).

Key sales drivers

Clothing & Footwear sales’ performance in December reflects several upside (+) and downside (-) factors including:
Later Black Friday (+): The late timing of Black Friday meant it fell into the December trading period, pushing December sales up.
Festive season prep (-/+): Shoppers prioritized spending on festive gifting, home decorations, and premium food as they prepared for Christmas. Non-food sales rose by xx%.
Christmas break (-): The Christmas school break started on December 17, encouraging family-focused spending, days out and festive gatherings.
Stormy weather (-): A mild Christmas dampened demand for winterwear, while early December storms impacted footfall and boosted demand for at-home comforts.
Shift to digital (-/+): Online sales surged, with non-food sales jumping xx% in December (BRC-KPMG).
Footfall flat (+): Footfall increased just xx% during the month (MRI Software), with Black Friday driving the biggest increases. While Boxing Day footfall fell xx% YoY with retailers including Marks & Spencer and John Lewis remaining closed, a xx% rebound post-Boxing Day highlighted shoppers’ desire to spend.

Budget-related caution

While clothing and footwear had a better month in December, growth in the category fared less well across November and December combined. Over the two months of November and December, clothing sales fell xx% and footwear sales fell xx% YoY.
Consumer confidence rose one point to xx (GfK), showing a slow but steady improvement but remaining well below zero. The mood continues to feel slightly flat as a steady stream of negative policy news helps create an environment of caution.
When consumers do spend, clothing and footwear continue to face stiff competition from the leisure and entertainment sectors.
Entertainment spending grew by xx% (Barclaycard), driven by pantomimes, ballets and Christmas concerts, while cinemas grew xx%, bolstered by the success of the musical Wicked.
With many consumers staying home, digital content and subscription spending was up xx%, and nearly a fifth (xx%) of British consumers reported increased subscription usage due to new content such as TV hits Black Doves and Day of the Jackal.
While inflation fell to xx% in December from xx% the previous month, retailers warned that upcoming increases in the minimum wage and employers' national insurance would exert inflationary pressure on prices in 2025.
Next boss Lord Wolfson warned that the tax rises were likely to reduce economic growth; the retailer also predicted it will need to increase prices by xx% this year as it works to offset the additional costs.