Retail sales have experienced a downturn as the festive season begins, highlighting economic concerns.
- Total sales in November fell by 3.3%, contrasting with last year’s growth figures.
- Food sales saw a modest increase, but non-food sales declined significantly, particularly online.
- Experts pinpoint low consumer confidence and high energy costs as contributors to the sluggish retail performance.
- Retailers remain hopeful for a rebound through late seasonal spending as Christmas draws near.
Retail figures for November reveal a significant dip, with total sales dropping by 3.3% compared to the previous year’s growth of 2.6% in the same month. The decline surpasses the 12-month average growth of 0.5%, indicating a notable shift in consumer behaviour.
While food sales reported a year-on-year growth of 2.4% over three months up to November, this increase falls short of both the previous year’s rate of 7.6% and the 12-month average of 3.7%. In contrast, non-food sales have seen a decline of 2.1% over the same period, with online non-food sales plummeting by 10.3%.
Helen Dickinson, Chief Executive of the British Retail Consortium, attributed the weak start to the festive season to the shift of Black Friday sales into December’s figures. “Even so, low consumer confidence and rising energy bills have clearly dented non-food spending,” she stated. Fashion sales were notably weak as consumers delayed winter clothing purchases, while health spending was supported by seasonal ailments.
Linda Ellett from KPMG UK highlighted that the absence of Black Friday figures in November’s data paints a bleak picture for the retail sector. She expressed hope that the end-of-month promotions spurred consumer spending, potentially offsetting November’s disappointing performance.
Retailers are optimistic that the anticipated holiday spending surge will salvage the year’s end sales figures.
