Retail Sales Monitor
Retail Sales Monitor: Festive falter as sales slip
Helen Dickinson OBE, Chief Executive, BRC:
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. 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 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. The Budget, as well as the introduction of new packaging levies, will cost retailers over £7 billion extra next year. The government must outline a plan to mitigate these costs or else risk higher prices and fewer jobs in the future.
Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG:
“Along with the arrival of winter weather, retail sales also went into minus numbers for November.
“An upturn in health product buying also signalled that the colder 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.”
Food & Drink sector performance, Sarah Bradbury, CEO, IGD:
“Post-October Budget, shoppers have likely noticed the media reaction from businesses, but this hasn’t significantly shifted their behaviour. November’s grocery market performance shows year-on-year growth in both value and volume. IGD’s latest research highlights signs of festive cheer, with 5% more shoppers than last year (41% vs 36% in 2023) planning to spend what they want this Christmas. However, despite this uplift, it's unlikely to be a bumper Christmas for all, as many remain focused on budgeting. The festive optimism is there, but the underlying caution means spending will still be influenced by economic pressures, especially on out-of-home activities.”
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