Retail sales in the UK during November showed only a modest increase, missing expectations according to ONS data.
- Retail sales rose by only 0.2%, falling short of the anticipated 0.5% growth.
- The increase in food sales was offset by declines in clothing and online shopping.
- Clothing sales experienced a significant drop, hitting the lowest level since January 2022.
- The exclusion of Black Friday results could skew perceptions of overall retail performance.
In November, retail sales in the UK edged up by 0.2%, a slight improvement from the 0.7% decline observed in October. This increase, however, fell short of analysts’ expectations, which predicted a 0.5% rise, according to the Office for National Statistics (ONS). The modest growth during this critical shopping season highlights challenges faced by the retail sector.
The sector benefited from a rise in supermarket sales, with food sales experiencing a 0.5% boost after three months of declines. Non-food store revenues also saw a small increase of 0.2%. However, clothing retail contributed to the underperformance, as sales fell by 2.6% in November, following a 3.5% decline in October. This marked the lowest level for clothing sales since early 2022.
Meanwhile, online retail sales dropped by 4.3% in November, marking the most significant decrease since March 2022. These contrasting trends suggest varied challenges across different retail segments.
According to Hannah Finselbach, a senior statistician at the ONS, the slight increase in retail sales for November can be mainly attributed to improved performances in food stores and household goods retailers like furniture shops. However, clothing stores faced persistent adverse trading conditions. Retailers and analysts are cautious in interpreting these figures as Black Friday’s impact is absent from the November data, which ends before the event.
Lisa Hooker from PwC emphasises that while November saw a minor improvement in sales, the absence of Black Friday’s influence means caution is needed when assessing retail health leading into Christmas. The exclusion of Black Friday could potentially misrepresent the performance of the retail sector during the festive season.
The UK’s November retail sales figures reveal a complex picture, with gains in food sales and furniture offset by significant dips in clothing and online retail.
