‘Golden Quarter’ fails to add shine to the UK retail sector

The retail sector recorded its worst December performance since at least 2017, ending the year with negative like-for-like sales figures in all three months of the crucial ‘Golden Quarter’, according to new data from accountancy and business advisory firm BDO.

BDO’s High Street Sales Tracker, recorded a fall of 2.7 percent for total like-for-like (LFL) sales for discretionary spend in December compared to last year’s figures.

Commenting on the quarterly data, Sophie Michael, head of retail and wholesale at BDO, said in a statement: “This is the worst December performance we’ve seen since our records began.”

“Higher sales in the so-called ‘Golden Quarter’ are expected in order to bolster profits and give retailers the capital they need to invest. There is a real risk that 2024 will see more store closures and more retailers struggling as consumers flock to those that can offer a better in store or online experience, product range or more competitive pricing,” Michael added.

The month started negatively, with sales falling by 3.49 percent in week one, and then worsened, with sales in discretionary categories falling 6.25 percent in week two and 4.49 percent in week three. Despite an uptick in the week leading up to Christmas Eve, sales fell again in the final week of December, by 3.58 percent compared to the same period last year.

The sales tracker indicated that the fashion sector performed particularly poorly in the run-up to Christmas, with sales falling by 6.1 percent compared to 2022, and in-store sales plummeting 7.5 percent. Sales in the lifestyle and homewares sectors fell by 0.2 percent and 1.6 percent respectively.