Recent figures indicate a challenging start to the festive period for fashion retailers.
- Sales in November declined by 3.3% compared to the previous year, highlighting weak consumer spending.
- Non-food retail suffered, with significant drops in both physical and online sales.
- The shift in Black Friday spending to December has skewed traditional sales patterns.
- Rising energy costs and low consumer confidence have further impacted retail performance.
According to the latest data from the BRC-KPMG retail sales monitor, November saw a significant downturn in retail sales, decreasing by 3.3% compared to the same period in the previous year. This decline reflects broader issues within consumer spending habits, as total retail sales failed to meet the growth seen in 2023, which was 2.6%.
The non-food sector has experienced noticeable challenges, with in-store sales decreasing by 2.1% and online sales plummeting by 10.1% year-on-year. The online penetration rate also fell, indicating a shift in how consumers are choosing to spend their money. In November, the rate dropped to 40.6% from 41.4% the prior year.
BRC’s chief executive, Helen Dickinson, highlighted that the movement of Black Friday sales into December has partly contributed to these disappointing figures. She further remarked on the impact of low consumer confidence and rising energy bills, which have significantly dented non-food spending.
Fashion retailers have been particularly hard hit, with households deferring purchases of new winter clothing. Meanwhile, there has been an increase in spending on health products due to seasonal illnesses.
Despite the disappointing start, retailers remain hopeful that spending will pick up as Christmas approaches, although they face potential pressures from upcoming budget changes and new packaging levies. These factors could impose additional financial burdens amounting to over £7 billion, potentially affecting prices and employment within the industry.
Retailers are bracing for a challenging period with hopes pinned on increased seasonal spending.
