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Shoppers avoid splashing out as retail sales ‘feel cold snap’ in November

Shoppers avoid splashing out as retail sales ‘feel cold snap’ in November
Matt Browning
Written By:
Posted:
03/12/2024
Updated:
03/12/2024

Shoppers in November spent less as they managed a rise in energy bills and festive budgets, retail sales data reveals.

Retail sales dropped by 3.3% between 27 October and 23 November, compared to the growth of 2.6% in the year before, according to the British Retail Consortium (BRC).

It was also below the three-month average of negative 0.1% and the 12-month average growth of 0.5%.

There was a particular decline in the amount spent on fashion, with shoppers opting to wait until the Black Friday deals on 29 November.

In total, for non-food sales – which include items such as clothing and other household goods – there was a 2.1% fall in the three months to November compared to the 1.6% decline in the same period in 2023.

For non-food sales in-store, retailers experienced a 2.2% drop year-on-year, compared to a 2.2% increase in November last year.

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While the sales are in decline compared to last year, the level was still above the 12-month average decline of 2.5%. However, for November, sales of non-food items were in decline.

Shoppers tended to go for the essentials last month, with food sales rising by 2.4% year-on-year in the three months to November. While food sales were seeing growth year-on-year, this was still much lower than the 7.6% growth in November 2023.

One aspect of the colder weather that improved sales of goods was seen in the health sector. With more illnesses spreading as the temperature dropped, the BRC noted there was a considerable boost in the sales of medicines and other remedies.

Black Friday’s impact on November sales

Helen Dickinson, chief executive at the BRC, 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.”

Dickinson added: “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.

“The Budget, as well as the introduction of new packaging levies, will cost retailers over £7bn extra next year. How effectively the Government works the industry to mitigate these costs will determine the extent of price rises and job losses in the future.”