- Retail sales fell 0.1% in November despite Black Friday
- Supermarkets saw fourth monthly decline in a row
- Over three months sales were up 0.6%, boosted by September sales of clothing and technology
Danni Hewson, AJ Bell head of financial analysis, comments on the latest UK retail sales figures:
“Retailers have been clear that the date of this year’s Budget was unhelpful, unnerving consumers at the very peak of the festive shopping period.
“The latest data suggests that shoppers were impacted by all the speculation about potential tax hikes and continued to display an abundance of caution despite Black Friday temptations.
“September’s spike in clothing sales and the release of must have tech has helped keep the three-month figure in positive territory, but it’s the crucial ‘golden quarter’ when many retailers make the pot of cash that will see them through the lean new year period.
“Shoppers have become more savvy over the years, and the cost of living crisis has meant people have often waited very patiently for the item they covet to hit the price they’re happy to pay.
“November’s discount window has grown larger and larger with one or two days now spread into two or three weeks, a phenomenon many store owners plan for months to try and take advantage of and there is evidence that people did hit high streets to bag a bargain.
“But every penny spent on gifts and goods seems to have been offset elsewhere, with supermarkets reporting subdued footfall as people carefully eked out their budgets.
“Consumer confidence has edged up in December, according to GfK’s latest survey, which could suggest that people have simply put off their festive spend until the chancellor’s plans became clear.
“For the UK economy to grow it will need consumers to spend and for consumers to spend they need to feel confident.
“Falling inflation will help foster that confidence and yesterday’s interest rate cut will also be welcomed by many. But people have been bruised; they’ve felt the impact of rising prices on their living standards and whilst they will want to make the most of the Christmas celebrations many households will have a few less presents under the tree this year.”
