Responding to the latest ONS Retail Sales Index figures, which showed sales up 0.2% by value, and up 0.1% by volume, Kris Hamer, Director of Insight at the British Retail Consortium, said:

After a positive start to the Golden Quarter, November sales stagnated, with higher energy bills and low consumer sentiment impacting spending. Clothing suffered from a fall in sales, with milder weather putting many off updating their winter wardrobe. Consumers were also holding out for the main black Friday sales week to pick up beauty and electrical deals, which saw their first falls of the year. The final two months of the year account for over one-fifth of all sales, making it a period of vital importance – particularly for non-food. With a weak November performance, retailers will hope that shoppers come out in force in the final days before Christmas.

Given the shaky start to the festive season, retailers will be looking at the £7bn in new costs from the Budget facing the industry in 2025 with increased concern. Higher employer national insurance contributions, a higher National Living Wage, and a new packaging levy will heap pressure on an industry that is already paying more than its fair share of tax. With sales growth unable to keep pace, retailers will have no choice but to raise prices or cut costs – closing stores and freezing recruitment. To mitigate this, Government must ensure that its proposed business rates reform does not result in any shop paying higher rates than they already do.”

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