3rd Dec 2024 05:03
(Alliance News) - UK retail sales were "dented" in part by low consumer confidence and higher energy bills, although the decline was "primarily down to the movement of Black Friday", figures on Tuesday showed.
The British Retail Consortium, which published the data, noted that the later timing of Black Friday in 2024 meant that it did not fall into the November 2024 figures, resulting in artificially weaker annual results.
Still, the BRC said total UK retail sales decreased by 3.3% on-year in November, against 2.6% growth in the same month of 2023. This was below the three-month average decline of 0.1% and the 12-month average growth of 0.5%.
Food sales increased 2.4% year-on-year over the three months to November, against a growth of 7.6% in November 2023 and below the 12-month average growth of 3.7%.
Non-food sales decreased 2.1% year-on-year over the three months to November, against a decline of 1.6% in November 2023 but above the 12-month average decline of 2.2%.
For in-store non-food sales, the rate of decline was unchanged at 2.2% for the three months, while online sales fell 10% on-year in November against the prior year's average 2.1% decrease. This was below the three-month average decrease of 1.7% and below the 12-month average decline of 1.5%, the BRC said.
"While it was undoubtedly a bad start to the festive season, the poor spending figures were primarily down to the movement of Black Friday into the December figures this year," commented BRC Chief Executive Helen Dickinson. "Even so, low consumer confidence and rising energy bills have clearly dented non-food spending. Spending on fashion was particularly weak as households delayed purchases of new winter clothing, while health spending was boosted by the season’s arrival of coughs and colds."
Dickinson also noted concerns surrounding the government's budget, saying that combined with new packaging levies it "will cost retailers over GBP7 billion extra next year".
"How effectively the government works the industry to mitigate these costs will determine the extent of price rises and job losses in the future," she added.
Linda Ellett, KPMG's UK head of consumer, retail & leisure, said: "While the majority of November's data tells a disappointing tale for the retail sector, this reporting didn't include Black Friday week, so the hope for retailers is that consumers were being savvy shoppers and that the promotional push in the last days of the month saw held-back consumer spend materialise and mitigate what is otherwise a disappointing month.
"If not, then we may see some retailers launching Christmas sales early."
By Emma Curzon, Alliance News reporter
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