UK clothing and footwear retailers saw only marginal growth over the festive period, with sales rising just 0.1% in the 12 weeks to 4 January, according to new data from Kantar.
The figures represent a modest recovery from the 1.3% fall seen in the previous period, but underlying trends remained weak, UBS analysts pointed out.
Volumes were still down 0.5%, and average selling prices grew just 0.6%, down from 1.9% previously.
Full-price sales made up 59.1% of total sales, down from 61.3% a year ago, which the analysts said suggested a heavier reliance on promotions.
Online sales slumped 4.2% year on year, a worsening trend from the 0.9% decline seen in the previous update.
In contrast, store sales rose 3.5%, reversing a 1.7% fall in the prior period, helped by holiday footfall.
UBS said the data shows a muted festive season overall, with discounting likely weighing on margins. Among major names, Next PLC, Associated British Foods PLC-owned chain Primark and Marks and Spencer Group PLC showed the strongest correlation to Kantar’s trends.
Next posted 3.0% sales growth in Kantar’s data, with full-price up 5%. Primark gained market share despite flat growth, while M&S showed improvement, with online up 6.5% and store sales less negative. ASOS PLC underperformed, with sales down nearly 20%.