Black Friday boosts sales in ‘strong’ November, say BRC-KPMG

Retail sales figures increased 0.9% on a total basis in November after adjustments for Black Friday were taken into consideration.

This is above both the three- and 12-month averages of 0.0% and 0.2% respectively. On a like-for-like basis, UK retail sales increased 0.4% during the period.

During the three months to November, food sales increased 0.3% on a like-for-like basis and 1.3% on a total basis; however, this was below the 12-month average growth of 1.5%.

Throughout the same three-month period, non-food sales in the UK fell 4.3% on a like-for-like basis and 4.1% on a total basis. This was below the 12-month average fall of 1.7%.

In November, non-food sales declined year on year but this figure was heavily distorted by the timing of Black Friday.

BRC chief executive Helen Dickinson said: “Once the figures are adjusted to take account of the timing of Black Friday, growth appears stronger in November than in previous months. Shoppers appeared ready to take advantage of the great bargains available, both online and on the high street.

“Electronics and clothes both benefited from big discounts, with the recent cold snap adding further urgency to purchases of winter-wear. Furthermore, as the spectre of a no-deal Brexit has been pushed back to after Christmas, consumers were more prepared to open their wallets to a little extra festive spending.

“[But] if consumers are to avoid price rises, and reduced availability, politicians must put frictionless, tariff-free trade at the top of their new agenda.”

KPMG UK head of retail Paul Martin said: “At first glance, November’s decline in like-for-like retail sales of -4.9% will leave retailers reaching for the smelling salts, but context is key. If adjusted for the later timing of Black Friday and Cyber Monday, sales are more likely to have increased by a more palatable 0.4% like for like.

“Over the course of November, consumers will have held off making purchases in anticipation of discounts to come, despite many retailers spreading out promotions across several days, if not weeks. That said, consumers will also have put Brexit and political uncertainty to one side temporarily, focusing on promotions and the upcoming festivities instead.

“The key question will be whether demand can rebound enough to make up for several disappointing months of trading this year.”