LocalVerse Report 2023 - 2024 Retail Performance

Retail Performance

The retail landscape is constantly evolving, shaped by shifting consumer behaviour, economic trends, and industry innovations. This analysis explores key insights behind the rise and fall of sales across various retail sectors in the UK from 2023 to 2024, based on data from the Office of National Statistics and major news sources.

Independent Clothing Stores

Independent clothing retailers in the UK faced significant struggles in 2024, with a widespread decline in sales compared to 2023

While there was some improvement during the holiday season, overall figures remained well below previous levels. The rising cost of living, high inflation, and increased operational expenses, including soaring energy costs and staff wages, placed substantial pressure on these businesses. Furthermore, the continued shift to online shopping made competition fierce, with many independent stores failing to maintain their customer base.

Independent Household Stores

Independent household goods stores also experienced sharp declines, failing to meet any of their 2023 quarterly sales figures. Major retailers such as DFS and Wickes reported weakened demand for high-cost household items, attributing this to consumers exercising caution with discretionary spending amid economic uncertainty. Rising mortgage rates and the broader cost-of-living crisis further dampened consumer confidence in making large purchases, significantly affecting the home improvement and furniture sectors.

Retail Store Closures

Store closures surged across the UK in 2024, with nearly 13,500 retail locations shutting their doors—marking a 28% increase from 2023. Independent retailers bore the brunt of this downturn, accounting for 84.1% of closures. Even established brands like Superdry and Ted Baker struggled, citing tough trading conditions and significant drops in revenue that led to the closure of multiple locations. The shift towards online retail, coupled with higher rent and business rates, contributed to the widespread downturn for brick-and-mortar stores.

Independent Food Stores

Conversely, independent food stores witnessed growth, driven by a record £1B in investments in 2024, up from £646M in 2023 This funding was directed toward store refurbishments, implementation of energy-efficient technologies, and crime prevention measures.

Consumer behaviour also played a role, as shoppers increasingly sought high-quality, locally sourced products. Upmarket grocers such as Booths saw a 6.7% rise in annual sales, exceeding £300M for the first time, as foot traffic and basket spend increased.

Castore & Telecom Sales

Castore, the British sportswear brand, reported a record-breaking trading period in December 2024, with a 16% rise in sales. The growth was fuelled by a surge in demand for football shirts and Formula One merchandise, reflecting the increasing influence of sports fandom on retail trends. The global sports and outdoor toys market is also on track to expand at a compound annual growth rate of 4.6% from 2025 to 2034, driven by heightened health consciousness and a shift towards active lifestyles and outdoor recreation.

The UK’s telecom and computer sectors saw significant gains in 2024, propelled by technological advancements and increased consumer spending. The release of new AI-driven products, particularly from major companies like Apple, led to a nearly 35% surge in sales of telecoms and computers in September alone. This contributed to a 1.9% overall increase in retail sales for the third quarter, the highest since mid-2021. Additionally, the UK telecommunications market grew to £22.12B in 2023, with forecasts indicating a compound annual growth rate of 5.1% from 2024 to 2032. This expansion is largely driven by the rapid deployment of 5G networks and the increasing adoption of Open RAN technology, which offers more flexible and cost-effective network solutions.

Conclusion

The UK retail sector in 2024 saw mixed fortunes, with some industries thriving while others struggled. Independent clothing and household goods stores faced declines due to rising costs and cautious spending, while sectors like food retail, fuel stations, and tech-driven markets benefited from strategic investments and shifting consumer preferences. Trends such as the rise of collectibles, health-focused spending, and AI advancements highlight the importance of adaptability. As the retail landscape continues to evolve, businesses that embrace innovation and respond to consumer needs will be best positioned for long-term success.