Study Predicts A 3.2% Rise In 2024 Retail Sales

• Retail sales to hit £352.92bn over 2024, up 3.2% YoY
• Sportswear to see the biggest YoY growth at 6%
• 88% of consumers to change their shopping habits over the year
• One-quarter of consumers to see their disposable income increase (24%)

Retailers are set for a more lucrative 2024 with sales forecast to rise from £342.08bn in 2023 to £352.92bn this year - an extra £10.84bn.

The 2024 Spending and Saving Report by VoucherCodes.co.uk, reveals that over 2024 retail sales are expected to increase by £10.84bn or 3.2% as consumers dial up spending and inflation rates boost sales totals.

The report forecasts all retail categories will see sales rise this year, however the biggest winner is Sportswear which is set to rise by 6% from £15.39bn to £16.32bn. With more people wearing sportswear day-to-day and trainer trends moving quickly, sales are set to boom. This is followed by Health & Beauty with a 3.7% rise from £25.65bn to £26.60bn, and then Groceries and Baby & Child, both with 3.4% rises. 

At the other end of the scale, the Home & Garden category is forecast to perform less well with a rise of just 1.7% YoY. With a higher average price point, many consumers will be unable to afford to spend on furniture after two years of having their spending power depleted. Baby & Child will also struggle with a 1.9% rise, as will the Technology category (2.3%). 

UK retail spending by category. 2023 actuals, 2024 forecast

Whilst spending is being driven up by inflation, consumers will have more to spend over 2024, with a quarter expecting their disposable income to increase during the year (24%). 

However, after two years of struggling financially, consumers will continue to be cautious with how they spend with 88% saying they will adapt their shopping habits in 2024. Brits will be looking for cheaper products (46%), shopping around (36%), using discount codes (35%), and taking advantage of sales (23%).

Michael Brandy, Senior Commercial Director at VoucherCodes.co.uk, comments: “Things are finally looking up for the retail sector with sales increases forecast across the board. After a challenging few years, retailers will undoubtedly welcome this more positive outlook for 2024 with open arms.

“However that being said, whilst sales are on the up, consumers continue to be savvy about where and how they spend their money. Encouraging customers to part with their hard-earned cash will be tricky so retailers will need to offer added value, quality products, and most importantly, competitive prices to get ahead over the next twelve months.”

Source : VoucherCodes.co.uk

Image : Alena Kravchenko / iStockphoto.com / 1134663982

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