Retail sales faced a decline in November, as revealed by recent data.
- Overall sales fell by 3.3% compared to November last year, contrasting with past growth.
- Food sales saw modest growth while non-food items struggled significantly.
- Consumer spending was influenced by the timing shift of Black Friday to December.
- Retailers remain hopeful for a recovery in the lead-up to Christmas.
The British Retail Consortium (BRC) reported a 3.3% decline in total sales for November, a notable contrast to a 2.6% increase during the same period last year. This decrease is above the average 12-month growth rate of 0.5%, highlighting a significant deviation from typical sales patterns.
Food sales experienced a 2.4% year-on-year growth over the three months leading up to November. Although this represents an increase, it falls short of the 7.6% rise recorded in 2023 and is below the 12-month average growth of 3.7%. On the other hand, non-food sales experienced a downturn, declining by 2.1% in the same three-month period, which was exacerbated by a substantial 10.3% fall in online non-food sales.
Helen Dickinson, the chief executive of the BRC, explained that the poor sales figures at the start of the festive season were influenced by the shift of Black Friday sales into December. She noted that despite these figures, low consumer confidence and rising energy bills have had a considerable impact on non-food sales, with fashion suffering as many households postponed winter clothing purchases. However, health-related spending saw a boost due to seasonal illnesses.
Linda Ellett from KPMG UK highlighted that much of November’s data does not reflect Black Friday activity, suggesting that consumers may have been waiting for promotional offers, which could surface in December’s figures. Ellett mentioned that if these promotional strategies do not succeed, there might be an early start to Christmas sales by some retailers.
Retailers are hopeful that the spending will pick up as Christmas approaches, despite the challenges faced in November.
