UK retail sales rise by 1.3% in Nov as Black Friday deals boost volumes
UK retail sales volumes rose by 1.3% in November compared with the prior month, boosted by heavily discounted Black Friday deals, according to official data published on Friday.
The change followed zero growth in October, which was revised from a fall of 0.3%, said the Office for National Statistics.
“Retail sales grew strongly in November as heavy Black Friday discounting encouraged shoppers to spend. However, with the three-month trend continuing to fall and overall sales still below pre-pandemic levels, it’s still a challenging time for retailers," said Darren Morgan, the ONS director of economic statistics.
“In the latest month, household goods retailers, clothing shops and department stores all reported robust sales, with computer stores, sports equipment, toy shops and cosmetics stores particularly benefitting from the impact of their Black Friday promotions."
“Supermarket sales ticked up a little, but it was specialist food and drink stores that had a really strong November due to customers stocking up early for Christmas and spending more than we have traditionally seen at this time of year.”
AJ Bell analyst Danni Hewson said heavy discounting in the Black Friday sales may have helped sales but would hit retailers in the longer term.
“For households, putting an official label on things doesn’t really matter. People already know how tough things are and they’re using every trick in the book to get by," she said.
“Black Friday delivered countless opportunities to bag a bargain as retailers reached for the red pen to try and get their tills ringing. The fact the tactics worked will undoubtedly have created mixed feelings in the sector."
“This is the ‘golden quarter’ - the period of time retailers make enough money to see them through the January blues - but if they’re being forced to discount heavily to encourage people to buy, it will leave them with a financial mess to clean up in the new year."
“There have already been warnings that thousands of retailers are in a precarious predicament and, even though people did splash out on festive frocks, posh food and even big ticket home improvement items last month, it is likely we will see more store closures in 2024.”
Reporting by Frank Prenesti for Sharecast.com