Later Black Friday timing sees UK retail sales fall
By Josh White
Date: Tuesday 03 Dec 2024
(Sharecast News) - Fresh retail sales data on Tuesday morning showed a sharp decline in sales in November, reflecting a challenging time for the retail sector due to the later timing of Black Friday.
The latest BRC-KPMG retail sales monitor, covering the four weeks from 27 October to 23 November and thus not including Black Friday on 29 November, revealed a 3.3% year-on-year drop in sales.
Total retail sales fell significantly below the three-month average of -0.1% and the 12-month average growth of 0.5%.
"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," said Helen Dickinson, chief executive officer of the British Retail Consortium.
"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."
Food sales offered a rare bright spot, rising 2.4% year-on-year over the three months to November, though that was well below the 12-month average growth of 3.7%.
In contrast, non-food sales continued their decline, slipping 2.1% year-on-year over the same period, marginally better than the 12-month average fall of 2.2%.
The performance of in-store non-food sales mirrored that trend, with a 2.2% year-on-year decline over the three months, reversing a 2.2% increase recorded in November last year.
Online non-food sales fared worse, plummeting by 10.3% in November, significantly below both the three-month and 12-month average declines of 1.7% and 1.5%, respectively.
The proportion of non-food items purchased online fell slightly, with the online penetration rate dropping to 40.6% from 41.4% in November 2023, though it remained above the 12-month average of 36.4%.
"Retailers will be hoping that seasonal spending is delayed, not diminished, and that customers get spending in the remaining weeks running up to Christmas," Dickinson added.
"If not, retailers will be feeling the squeeze from both sides as reduced revenues are met with huge additional costs next year.
"The Budget, as well as the introduction of new packaging levies, will cost retailers over £7bn 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."
Reporting by Josh White for Sharecast.com.
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