- Retail sales rose by 0.2% in November after a 0.7% fall the previous month
- Black Friday not captured by these figures, but pre-promotions started early
- Supermarket tills were ringing but clothing sales fell for a second consecutive month
Danni Hewson, AJ Bell head of financial analysis, comments on the latest retail sales figures:
“Considering November falls right in the middle of the crucial ‘golden quarter’ for retailers, this latest set of figures won’t get champagne corks popping.
“Though the period doesn’t cover that now ubiquitous Black Friday weekend which shoppers tend to hang on for in the hopes that what’s on Santa’s list this year might get marked down, it does take in the late half-term holiday.
“To put it bluntly, consumers had the rug pulled out from under them in the run up to the Budget and anecdotal evidence suggests they were still being cautious with their cash in the days that followed.
“Food stores got a welcome boost with supermarkets already reporting that this Christmas is likely to be a record breaking one.
“After those lockdown years and the past couple since when rising prices and interest rates forced us all to reign in our spending, this year things feel a bit different. People have a bit more money in their pockets thanks to those above inflation wage increases and they’re more than ready to cast off the gloom, even if it’s just for a few fun filled festive days.
“But budgets will still be closely watched, because the last couple of years have made us all acutely aware that we can only spend a pound once, and that pound won’t buy as much as it used to.
“You can see that caution in clothing sales, which saw another chunky 2.6% fall. One factor is the growing popularity of second-hand sites like Vinted and Depop which don’t have the same stigma attached as charity shops.
“For young people it’s a way to make money whilst grabbing sought after labels at a fraction of the price. Wear it a couple of times and then sell it on so the next person can freshen up their wardrobe without breaking the bank.
“What’s notable is the lessening reliance on online sales. Judging by the bustle on high streets as we hurtle towards ‘Super Saturday’, people want the experience of shopping. They want to see the lights, grab a festive bite to eat with friends and avoid the stress of walking up and down their street hunting for a misplaced delivery.
“We won’t really know until after the last gift is unwrapped whether the retail sector got what it wanted for Christmas. Because without that boost over the festive period, the new year with its increased labour costs is likely to be a tough one.”
