The British Retail Consortium (BRC) – KPMG Online Retail Sales Monitor have reported that new figures show UK retail sales last month grew 1.3% from last year, proving to be a mixed blessing for retailers.
During Black Friday week, non-food sales increased 40% when compared with other weeks in November; as well as marking the highest three month average rise since March. Meanwhile, figures show that sales in the weeks leading up to Black Friday decreased, and physical retail sales in the three months to November dropped 0.8%.
Helen Dickinson, chief executive at BRC, commented: “Retailers of goods that don’t traditionally benefit from the event, such as clothing, saw weaker Black Friday week sales this year, but made the most of the increased online traffic in the weeks building up to the 25th November by offering promotions to capture shoppers browsing for early bargains.”
“Overall, consumer spending remains stable, although very much value-driven with a focus towards products on promotion as shoppers take advantage of the deals of the moment and retailers strive to offer the best choice and value to their customers.
“With an extra weekend to shop for Christmas this year, nerves will be tested in December as retailers choose their strategies to attract the last minute gift shoppers.”
Seeing the most substantial increase from Black Friday this year was online sales, breaking penetration records. Last month marked the third successive month of double-digit growth in online sales, posting a 10.9% from the previous year.
Whilst non-food spending increased 10.7%, compared to total growth of 1.7% and online sales signified 27.6% of total non-food sales this year, the highest rate ever.
Ms Dickinson continued: “With discounts on electricals being the key feature of Black Friday sales, it is unsurprising that the other non- food category, in which consumer electronics sit, contributed the most to growth in November.
“It was the beauty and toy categories which topped the growth rankings, as customers took advantage of the pre-Christmas discounts for gift purchases.
“With more than 1 in 4 pounds spent online, this was a record high for online non-food sales. Facilitated by the convenience of buying online, heavy sales periods - such as the month of November - encourage an increasingly value-driven customer to shop around for price comparisons to fulfil their Christmas shopping list.”
