British Retail Sales Dampened by Consumers Waiting for Bargains

While retail sales in Great Britain rose in November, analysts said the results were dampened by consumers waiting for bargains.

Retail sales rose by 0.2% in November, marking the first increase since August, the Office for National Statistics (ONS) said in a Friday (Dec. 20) press release.

This increase came after a 0.7% decline in October, according to the report.

This report covers the four weeks from Oct. 27 to Nov. 23, so it does not include Black Friday (Nov. 29), per the release.

“The official Black Friday date falls into our December release with only early promotions captured in our November non-seasonally adjusted estimates,” the release said. “This change in timing is accounted for by our seasonal adjustment approach. However, some retailers reported that Black Friday sales started well in advance of the official day.”

November’s increase in retail sales was driven by food stores sales volumes, which rose 0.5%, and non-food stores sales volumes, which were up 0.2%, per the release. The non-food stores category includes the total of department, clothing, household and other non-food stores.

While that total was up, clothing stores sales fell by 2.6% in November, dropping to their lowest volumes since January 2022. Retailers attributed this decline to economic factors affecting sales, the release said.

The British Retail Consortium said the overall November results showed that retail sales had “stagnated.” The group attributed this to higher energy bills, low consumer sentiment, mild weather that impacted sales of winter apparel, and consumers holding out for Black Friday sales.

“The final two months of the year account for over one-fifth of all sales, making it a period of vital importance — particularly for non-food,” BRC Director of Insight Kris Hamer said in a Friday press release. “With a weak November performance, retailers hope that shoppers come out in force in the final days before Christmas.”

Accounting and consulting firm RSM UK also said November’s retail sales were dampened by consumers holding out for Black Friday deals.

“The later than usual Black Friday weekend meant November’s retail sales figures saw only a slight uptick as cost-conscious consumers held off to bag a bargain,” Jacqui Baker, head of retail at RSM U.K., said in a Friday press release. “Despite many retailers launching Black Friday offers early, November trade got off to a slow start, which dragged on for most of the month.”

The BRC said Dec. 3 that U.K. retailers had seen a “bad start to the festive season” due to the timing of Black Friday.

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