Recent statistics from the Office for National Statistics (ONS) indicate a positive turn for UK retail sales in November. After a flat performance in October, retail sales volumes surged by 1.3% in November, with non-food store sales rising notably by 2.3%, following a meager 0.2% increase the previous month. The rise was attributed to early Black Friday promotions and increased markdowns, yet widespread discounting may impact profit margins for retailers.
Despite the crucial role of online sales during Black Friday, non-store retailing only saw a modest 0.2% rise in sales volumes in November, surprising given the significance of the online channel during this period.
While the value of retail sales in November increased by 1% compared to October and showed a 3.8% year-on-year increase, this growth was somewhat dampened by inflation exceeding 3.8%. The volume of goods purchased surged by 1.3% compared to the previous month but rose by a mere 0.1% year on year.
When excluding petrol and automotive fuels, sales values rose encouragingly by 1.2% compared to the previous month and by 5.7% year on year.
The non-food sector experienced notable growth, particularly in cosmetics stores, which saw robust expansion, and clothing stores reported a 1.3% increase in sales volumes in November. Furthermore, online sales in the textile, clothing, and footwear category surged by 10% year on year in terms of value.
Retail experts highlighted the significance of early Black Friday promotions in boosting sales amidst economic constraints. While some categories like cosmetics experienced significant growth, others such as household appliances and furniture saw weaker performances during this sales period.
Jacqui Baker from RSM UK noted the importance of sales events in financially constrained times, emphasizing the boost provided by Black Friday offers. Consumer confidence and signs of economic recovery also contributed to increased spending, albeit with consumers exercising caution and making considered purchase decisions.
The “lipstick effect” continued to fuel cosmetic sales with an overall growth of 14.1% year on year, representing a trend where consumers invest in smaller indulgences even during challenging economic times.
