Lofty sales on the high street

Relief as trading defies expectations

THERE was relief on the High Street yesterday after the latest official figures showed that sales grew last month, despite the ongoing pressure on household finances.

It fuelled hopes that Christmas will prove to be winner for retailers.

Sales in November were up 1.6% on the same time last year, despite rising inflation and stagnant wage growth, Office for National Statistics figures revealed.

In fact, average store prices increased by 3.1% compared with November last year.

Black Friday proved the catalyst for the unexpected sales boost. Shoppers snapping up cut-price electrical appliances was the main reason for the uptick in retail fortunes. Meanwhile, online sales increased by 10% from last year, and now account for 17% of all retail sales in the UK.

Lisa Hooker, consumer markets leader at PwC, said: “Given the continued resilience of consumer sentiment, we’re optimistic that Christmas shopping sales in December will hold up.” But she warned that if there’s another cold snap and more snow, shops will lose out.

Ian Geddes, head of retail at Deloitte, said: “The next 10 days of pre-Christmas sales will be crucial for retailers.” He predicted that trading is likely to peak on December 22, particularly for purchases of food and drink.

“Crucially, the record-breaking Cyber Monday is not included in the figures, and this will give a significant boost to sales figures,” he added.