Report Summary

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.

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Clothing and Footwear year-on-year growth