Low consumer confidence and rising energy bills dent non-food spending during November, says the BRC.
According to the latest BRC-KPMG Retail Sales Monitor, UK Total retail sales decreased by 3.3% year on year in November, against a growth of 2.6% in November 2023. This was below the 3-month average growth of -0.1% and the 12-month average growth of 0.5%.
Food sales increased 2.4% year on year over the three months to November, against a growth of 7.6% in November 2023. This is below the 12-month average growth of 3.7%. For the month of November, Food was in growth year-on-year.
Non-Food sales decreased 2.1% year on year over the three-months to November, against a decline of 1.6% in November 2023. This is above the 12-month average decline of 2.2%. For the month of November, Non-Food was in decline year-on-year.
In-store Non-Food sales over the three months to November decreased 2.2% year on year, against an increase of 2.2% in November 2023. This is above the 12-month average decline of 2.5%.
Online Non-Food sales decreased by -10.3% year on year in November, against an average decline of -2.1% in November 2023. This was below the 3-month average decrease of 1.7% and below the 12-month average decline of 1.5%.
The online penetration rate (the proportion of Non-Food items bought online) decreased to 40.6% in November from 41.4% in November 2023. This was above the 12-month average of 36.4%.
Helen Dickinson, Chief Executive at the British Retail Consortium, said: “While it was undoubtedly a bad start to the festive season, the poor spending figures were primarily down to the movement of Black Friday into the December figures this year. Even so, low consumer confidence and rising energy bills have clearly dented non-food spending. Spending on fashion was particularly weak as households delayed purchases of new winter clothing, while health spending was boosted by the season’s arrival of coughs and colds.
“Retailers will be hoping that seasonal spending is delayed not diminished and that customers get spending in the remaining weeks running up to Christmas. If not, retailers will be feeling the squeeze from both sides as reduced revenues are met with huge additional costs next year. The Budget, as well as the introduction of new packaging levies, will cost retailers over £7 billion extra next year. How effectively the government works the industry to mitigate these costs will determine the extent of price rises and job losses in the future.”
