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Sandra Halliday Published
February 7, 2025
UK retail sales are expected to rise by 3.2% this year “as the cost of living crisis eases and consumers have more disposable income”.
That’s according to a new report from VoucherCodes.co.uk. Its Spending and Saving Report says that sales should hit £352.92 billion across the year as a whole and the star category will be sportswear that should see growth of 6%.
Some 88% of consumers say they’ll change their shopping habits over the year too and 24% of consumers will see their disposable income increase.
Retail sales were £342.08 billion in 2025 and while that figure should jump by £10.84 billion in 2025, some of that will be accounted for by inflation.
But there’s no denying that consumers are feeling more confident about shopping for certain categories and that 6% sportswear uplift from £15.39 billion to £16.32 billion will come as they continue to wear sports clothing and shoes for their everyday lives.
Health & beauty’s growth will also outstrip the average with a 3.7% rise from £25.65 billion to £26.60 billion.
Fashion overall will rise but its growth will be more sluggish with just a 2.6% lift to £46.05 billion.
As mentioned, almost a quarter of consumers expect their disposable income to increase during the year. But what about that huge 88% who’ll be changing their shopping habits?
Some 46% will be looking for cheaper products, 36% will be shopping around, 35% using discount codes, and 23% taking advantage of sales.
VoucherCodes’ Senior Commercial Director Michael Brandy said it’s clear that “things are finally looking up for the retail sector with sales increases forecast across the board. After a challenging few years, retailers will undoubtedly welcome this more positive outlook for 2025 with open arms”.
But he added that “consumers continue to be savvy about where and how they spend their money. Encouraging customers to part with their hard-earned cash will be tricky so retailers will need to offer added value, quality products, and most importantly, competitive prices to get ahead over the next 12 months”.