Retail sales growth exceeds expectations on back of Black Friday
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Retail sales grew stronger than expected last month as shoppers snapped up Black Friday bargains and bought Christmas presents, according to official figures.
The Office for National Statistics (ONS) revealed that retail sales volumes increased by 1.3 per cent in November.
It was ahead of the predictions of economists, who had forecast 0.4 per cent growth for the month.
The ONS also revised its data for October upwards, reporting that there was zero growth in retail sales after previous estimating a fall of 0.3 per cent.
This comes after a string of economic data reports this week, with inflation falling to 3.9 per cent, and levels of national debt exceeding expectations.
This morning, alongside retail sales, it was reported there was a 0.1 per cent fall in revised GDP figures. The Chancellor Jeremy Hunt was more circumspect however, saying the picture was much better in the medium term.
Darren Morgan, Director of Economic Statistics at the ONS, said: “Retail sales grew strongly in November as heavy Black Friday discounting encouraged shoppers to spend. However, with the three-month trend continuing to fall and overall sales still below pre-pandemic levels, it’s still a challenging time for retailers.
“In the latest month, household goods retailers, clothing shops and department stores all reported robust sales, with computer stores, sports equipment, toy shops and cosmetics stores particularly benefiting from the impact of their Black Friday promotions.
“Supermarket sales ticked up a little, but it was specialist food and drink stores that had a really strong November due to customers stocking up early for Christmas and spending more than we have traditionally seen at this time of year.”
Helen Dickinson, chief executive of the British Retail Consortium, said: “Many retailers tried to give sales a needed boost in November by starting their Black Friday sales even earlier this year. Cosmetics and toiletries had another strong month as consumers continued to splurge on smaller indulgences. Some categories that usually do well in the Black Friday month, such as household electrical appliances, household goods, and furniture saw weak growth.”
“Retailers anticipate that consumers will be making a last-minute dash to their favourite stores in the final days leading up to Christmas. People in retail will be working tirelessly in stores, warehouses and delivery services to make sure we all find what they need, keeping shelves stocked and delivering goods. As stores and delivery services become increasingly busy this weekend, it is essential that we all play our part in creating a friendly and enjoyable environment for other customers and staff this Christmas, and we ask for patience, kindness and consideration.”
Aled Patchett, head of retail and consumer goods at Lloyds Bank, said: “A rise in sales will be welcomed by retailers hoping for a first ‘golden quarter’ in three years, with a trading period in the run up to Christmas that has not been as impacted as it has in previous years by the pandemic and industrial action.
“The business environment will continue to be challenging in 2024 as the sector supports wage increases while keeping prices competitive. However, with energy and food price inflation easing and interest rates reaching a peak in recent months, the outlook is pleasingly more optimistic and confidence in the sector remains higher than a year ago, according to our latest Business Barometer data.”
Press Association