According to a recent report from VoucherCodes.co.uk, the UK retail industry is expected to see a 3.2% increase in sales in 2024. This growth is primarily driven by the alleviation of the cost of living crisis and an upsurge in consumers’ disposable income. The report estimates that retail sales will reach a total of £352.92 billion for the year, with the sportswear category leading the way with a predicted growth rate of 6%. In addition, it reveals that 24% of consumers anticipate an increase in their disposable income.
In 2023, retail sales in the UK amounted to £342.08 billion. Although the projected increase of £10.84 billion in 2024 is influenced by inflation, it is evident that consumers are becoming more confident in their shopping habits, particularly in certain sectors. The sportswear segment is expected to witness significant growth of 6%, rising from £15.39 billion to £16.32 billion. This surge can be attributed to the growing popularity of sports apparel and footwear being incorporated into everyday fashion. Moreover, the health and beauty industry is projected to outperform the average growth rate with a 3.7% rise from £25.65 billion to £26.60 billion. However, the fashion sector as a whole is predicted to experience slower growth, with only a 2.6% increase to £46.05 billion.
The report also sheds light on changing consumer shopping habits. It reveals that 88% of consumers plan to modify their purchasing behavior in the coming year. Among these changes, 46% of consumers aim to prioritize finding cheaper products, 36% will actively search for better deals, 35% will utilize discount codes, and 23% plan to take advantage of sales. These findings suggest that consumers are becoming more price-conscious and are actively seeking ways to save money on their purchases.
Michael Brandy, Senior Commercial Director at VoucherCodes, acknowledges the positive outlook for the retail sector indicated by the forecasted sales increases. However, he emphasizes that retailers must offer added value, quality products, and competitive prices to entice consumers to make purchases. With consumers remaining cautious about their spending, retailers must adapt and meet their demands to stay ahead in the market.
Overall, the report paints a promising picture for the UK retail sector in 2024. With an anticipated rise in disposable income and evolving shopping habits, retailers have the opportunity to capitalize on these trends by offering attractive products and competitive pricing. As the cost of living crisis eases, consumers are likely to increase their spending, particularly in the sportswear and health & beauty categories.
Useful links:
1. Government statistics on retail sales in Great Britain
2. Retail Research UK: Insights and analysis on the retail industry
