December sales provide little cheer for retailers
Published On Jan 6, 2025, 7:02 PM
Retail sales in December 2024 grew by 3.2% compared to the previous year, driven by gift purchases including beauty products and AI tech. However, overall growth for the year was weak, with a 0.4% increase in the last three months and total year sales up by only 0.7%. Challenges loom for 2025, including rising taxes and costs, impacting consumer confidence. While some firms reported successful sales, foot traffic in physical stores continued to decline, reflecting a difficult retail environment.
Stock Forecasts
WMT
Negative
Despite a slight increase in sales during December, the overall trend for retailers is concerning due to rising costs and declining foot traffic. Companies that primarily sell non-essential items may struggle further in the upcoming year as consumer spending is expected to shift. The mixed signals in consumer sentiment suggest that sectors linked to discretionary spending could face challenges. However, companies like Lidl that cater to budget-conscious consumers may see stable performance.
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