BRC-KPMG's latest Retail Sales Monitor, which covers the four weeks from 27th October to 23rd November 2024 (excluding the Black Friday week this year), found that UK total retail sales decreased by -3.3% YoY in November, against a growth of +2.6% in November 2023.
Non-food sales were in YoY decline, both in-store and online, and the online penetration rate decreased to 40.6%, from 41.4% in November 2023.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), says: “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.
"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.
“Retailers will be hoping that seasonal spending is delayed, not diminished, and that customers get spending in the remaining weeks running up to Christmas. If not, retailers will be feeling the squeeze from both sides as reduced revenues are met with huge additional costs next year."
Linda Ellett, UK head of consumer, retail &and leisure at KPMG, adds: “Along with the cold snap at the end of the month, retail sales also went into minus numbers for November.
“An upturn in health product buying also signalled that the winter months had arrived and, along with food and drink, was one of very few categories to see in-store or online sales growth.
“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.”
