UK retail sales growth picked up last month, figures on Tuesday showed, as the festive shopping season kicked off.
However, sales remained below the current inflation rate, suggesting volumes have weakened on-year.
According to the latest British Retail Consortium-KPMG monitor, retail sales climbed 4.2% on year in November, topping the three- and 12-month average growth rate of 2.6%.
On a like-for-like basis, sales rose 4.1%, beating the 12-month average of 1.2% and a three-month average of 2.3%.
‘Sales picked up as Black Friday discounting marked the beginning of the festive shopping season. However, sales growth remained far below current inflation, suggesting volumes continued to be down on last year. As the weather began to turn, customers were quick to purchase winter warmers, such as coats, hot water bottles, and hooded blankets. Black Friday discounts also boosted sales of home furnishings as many households traded big nights out for budget nights in,’ BRC Chief Executive Helen Dickinson said.
‘Despite facing huge cost pressures, retailers are doing all they can to keep prices affordable for all their customers. But, the cost of living crisis means many families might dial back their festive plans. Yet, with three weeks to go, there is still plenty of time for the Christmas cheer to bring sales home this Christmas.’
Over the three months to November, food sales rose 5.8%, topping the 12-month average rise of 2.2%.
Non-food sales were flat in November, massively undershooting the 12-month average rise of 3.0%.
KPMG analyst Paul Martin said: ‘Black Friday bargains saw retail sales grow by over 4% in November and was a much-needed boost both on the high street and online. Household appliances, footwear and furniture saw positive sales growth both in store and online as consumers sought out good deals on designer items and started to prepare for Christmas gatherings at home. However, some categories such as toys, computing and baby equipment have now seen several months of negative sales figures that even the festive boost has not been able to reverse.’
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