UK retail sales fell -0.3% MoM in December, a large miss from expectations that sales would grow 0.4% MoM. In Q4, sales fell -0.8% QoQ but were up still 1.9% YoY. The sales decline was an even worse -0.6% MoM when excluding fuel. Fuel and non-store sales were the main headwinds, both falling -1.9% MoM. These were offset by a 4.4% MoM increase in clothing sales, and a 1.2% MoM increase in department store sales.

For the full year 2024, retail sales volumes edged up 0.7% after two years of volumes declining. Food sales actually fell for the third straight year, down -1.6%, but were offset by non-food sales up 1.2% and non-store sales up 3.2%.