UK overall retail sales for November 2024 saw a
decline of 3.3% on a yearly basis, compared to an increase of 2.6% observed in
the same month the previous year, according to BRC-KPMG retail sales monitor.
This figure falls short of
both the three-month average growth rate of -0.1% and the 12-month average
growth rate of 0.5%.
In
the four-week period from 27 October to 23 November 2024, non-food sales
continued to decline on an annual basis for the month of November.
Sales
in the non-food sector over the three months leading up to November declined by
2.1% year-on-year, compared to a decrease of 1.6% in November last year, but
was still above the 12-month average decline rate of 2.2%.
In-store
non-food sales also decreased by 2.2% year-on-year, though this was less than
the previous year’s increase of 2.2%.
Online
non-food sales (including mail and phone orders) took the hardest hit,
plummeting by -10.3% year-on-year in November, a significant drop from the
-2.1% recorded in November 2023 and well below both the three-month and
12-month average declines.
Under
the online sales category growth rankings, health and beauty and house textiles
categories showed growth in November compared to October, while clothing,
footwear, home accessories, and other non-food categories experienced
declines.
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
The
online penetration rate for non-food items also fell to 40.6%, down from 41.4%
in November 2023 but still higher than the annual average of 36.4%.
Commenting
on the figures, British Retail Consortium chief executive Helen Dickinson said:
“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.”
The
food sector managed to show an annual increase for the month of November,
albeit at a slower pace, with a year-on-year (YoY) increase of 2.4% over the
three months to November.
However,
this was still below the robust 7.6% growth seen in November 2023 and the more
modest 12-month average growth of 3.7%.
Sarah
Bradbury, CEO of grocery sector insight firm IGD, said: “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.”
Looking
ahead, retailers are hopeful that consumers will boost their spending before
Christmas, offsetting this early slump.
Dickinson
warned that “retailers will be feeling the squeeze from both sides” as they
face over £7bn ($8.88bn) in additional costs next year due to budget
changes and new packaging levies.
Linda
Ellett, KPMG UK consumer, retail & leisure head, said: “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.”
By Just Style