Period covered: November 16Published: December 06, 2016Read time: 1min

Retail Sales Monitor

BLACK FRIDAY PROVES A MIXED BLESSING

Helen Dickinson OBE, Chief Executive, BRC: 

“November saw total sales up 1.3 per cent over the previous year, with Food the biggest contributor to growth. Whilst the figure isn’t spectacular, it’s a pretty solid performance in what has been a challenging year for sales in the UK.

“November plays host to Black Friday, which over the past few years has become one of the biggest shopping days of the year. This year’s event was expected to be the biggest yet, and our figures confirm that the week including Black Friday saw non-food sales up around 40 per cent compared with the other weeks of the month. However, compared to last year there was more of a shift of spending from earlier in the month, with sales down on last year in the weeks prior to the 25th November.

“It wasn’t the same story for everyone. Retailers of goods that don’t traditionally benefit from the event, such as clothing, saw weaker Black Friday week sales this year, but made the most of the increased online traffic in the weeks building up to the 25th November by offering promotions to capture shoppers browsing for early bargains.

“Overall, consumer spending remains stable, although very much value-driven with a focus towards products on promotion as shoppers take advantage of the deals of the moment and retailers strive to offer the best choice and value to their customers. With an extra weekend to shop for Christmas this year, nerves will be tested in December as retailers choose their strategies to attract the last minute gift shoppers.”

Paul Martin, Head of Retail, KPMG: 

“November retail sales figures remained positive – with total growth up 1.3 per cent on last year –but performance has slowed down and was not as strong as the previous month. Black Friday deals will have lured would-be shoppers away from the high street in search of bargains online.

“There was notable improvement in the sales figures for certain categories, with footwear – particularly men’s – having performed well in light of the colder weather. Clothing however, struggled somewhat with less growth than we saw in October. That said, retailers are likely to be pleased with any growth in this category based on recent performance.

“Perhaps unsurprising for the time of year, toys and children’s accessories were flying off the shelves, helped along by increased promotion in the run-up to Christmas. With the festive season nearly upon us, it seems furniture was also on the shopping list for many, with the category performing particularly well.

“The next month will be critical for retailers, providing one final push to improve and maintain sales figures against a backdrop of increasing costs and consumers’ insatiable appetite for discounts.”

Food & Drink sector performance, Joanne Denney-Finch, Chief Executive, IGD: 

“November food and grocery sales were boosted by Bonfire Night falling on a Saturday, but then curtailed by the growing impact of Black Friday, which diverts spending into other areas. Overall, it was a solid month with a slight uplift on last year.

“Although just over half (53 per cent) of shoppers have already begun buying their festive groceries, the trend is for later Christmas food shopping each year, so retail supply chains are set to be tested to their limit again.”