Shop sales in November ‘hardest to read in years’

RETAIL sales in November were slow and distorted by Black Friday, with stores warned that the build-up to Christmas is “the hardest to read in years”, according to a report.

The British Retail Consortium (BRC) said total sales were up 0.7%, compared with a 2.2% rise in November 2014.

Excluding online sales, only two categories – furniture and home accessories – showed growth in stores driven by Black Friday sales, according to the BRCKPMG Retail Sales Monitor.

Black Friday had an “undoubtedly” significant impact on nonfood categories, disturbing the build-up to Christmas and leading to 50% higher sales than in the first week of November.

British Retail Consortium chief executive Helen Dickinson said: “With growth of 0.7%, November was quite a slow month overall for retail. The picture was somewhat mixed when we look across the different categories, with half experiencing growth and the other half seeing a decline.

“As consumers and retailers continue to adapt to the changing patterns of omni-channel shopping, where the lines between channels become less and less relevant, this build-up to Christmas is one of the hardest to read in years.

“The conversion of people’s higher disposable income into retail sales shouldn’t be taken for granted.”

David McCorquodale, head of retail at KPMG, said an examination of November trading showed a slowdown in most categories as consumers held off buying in the hopes of a deluge of Black Friday discounts.

He said: “November’s relatively flat sales figures are a reality check for the retail sector with consumers holding off for a Black Friday bargain pitted against retailers determined to hold on to their hard-earned margins.

“The result was that, despite the hype around Black Friday, there was minimal loosening of the family purse strings compared to last year and retailers, facing significant cost increases next year, will be striving to wean UK shoppers off the discounting drug.

“While Black Friday ended up being more of an online affair, the focus over the next few weeks is to promote the theatre of the store for Christmas in the hopes that the tills will be ringing all the way into the new year.”