Cautious consumers delayed their Christmas shopping as retail sales edged up 2.7% in November, behind the 4.2% growth experienced last year.
This comes despite many retailers pushing Black Friday deals throughout the month.
Non-food sales dipped 1.6% over the 4 weeks to 25 November, however, food sales
jumped 7.6% – although this was behind the 12-month average growth of 8.4%.
BRC chief executive Helen Dickinson OBE said: “Black Friday began earlier this year as many retailers tried to give sales a much-needed boost in November. While this had the desired effect initially, the momentum failed to hold throughout the month, as many households held back on Christmas spending.”
“Retailers are banking on a last-minute flurry of festive frivolity in December and will continue working hard to deliver an affordable Christmas for customers so everyone can enjoy some Christmas cheer.”
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She added that next year the new cost pressures retailers have to bear, including a business rates hike and the biggest rise to the National Living Wage on record will mean that “retailers will have less capital to invest in lowering prices for their customers”.
KPMG UK head of retail Paul Martin pointed out that food and drink, health, personal care and beauty categories continued to drive growth whilst jewellery and watches saw the biggest decline in sales on the high street, which he said showed that “consumers are abandoning expensive presents in favour of more budget friendly gifting”.
November had the highest proportion of non-food sales bought online in 2023, which suggested shoppers were searching for Black Friday bargains.
He added: “With less than a month to go and sales growth limping along, the cost-of-living crisis has taken its toll on Christmas spending for many households, and the continued economic conditions are testing consumer resilience.
“Price remains the main purchasing driver, so we are likely to see a prolonged and well targeted period of discounting as retailers compete hard for a shrinking pool of spend and will need to clear stock.”
“With two of the three months of the crucial golden quarter seeing sales growth below 3%, it has already been a weak Christmas trading period.”
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