According to preliminary insights from Mastercard SpendingPulse, UK shoppers enthusiastically returned to the high street during the festive period, contributing to significant growth in jewellery and clothing sales.
The report reveals a 2.6% year-on-year rise in total UK retail sales from November 1 to December 24. In a notable trend, in-store sales increased by 3.5%, signaling a return of shoppers to traditional brick-and-mortar stores. Contrarily, online sales experienced a 2.8% decline, indicating a persistent preference for in-person shopping, especially during the holiday season.
Jewellery emerged as a major winner during this festive period, experiencing substantial growth with an 8.3% year-on-year increase. Clothing sales also saw a notable surge, rising by 8% as British consumers updated their wardrobes for the festive party season.
Natalia Lechmanova, Senior Economist of Europe for Mastercard, commented on the trends, stating, “The British consumer has been savvy with their spending this year. Although overall retail spend is relatively flat, we’ve seen an increase in spending on Black Friday and Cyber Monday promotions when it comes to electronics in particular. Shoppers have been willing to splash out for gifts, with spend on jewellery and clothing up considerably year-on-year but wanted to do so at the right price.”
Lechmanova further noted a cautiously optimistic return to the high street, emphasizing that British consumers, eager to celebrate during the festive period, increased spending on restaurants by over 10%. This shift reflects a continued appreciation for experiences and spending time together, particularly in the post-pandemic era.
