In November, there was a promising increase in retail sales in the UK, signaling a glimmer of hope for the struggling industry. According to the Office for National Statistics, retail sales volumes went up by 1.3% compared to October, with non-food store sales leading the way with a 2.3% rise. This boost in sales can be partially attributed to the earlier Black Friday promotions and increased markdowns offered by retailers.
Interestingly, online retailers only experienced a modest 0.2% increase in sales volumes during November, despite the significance of the online channel during the Black Friday period. This unexpected trend raises questions about the effectiveness of online sales during this time.
When considering the value of retail sales, November saw a 1% increase compared to October and a 3.8% increase year on year. However, it’s important to note that this growth is not as impressive as it may seem, as inflation has been higher than 3.8%. In terms of volume, the year-on-year increase was only 0.1%.
Further analysis reveals the significant impact of Black Friday on retail sales. Clothing stores reported a 1.3% increase in sales volumes, while cosmetics stores saw strong growth. Online sales in the textile, clothing, and footwear category also experienced a noteworthy 10% increase in value sales compared to the previous year.
Despite these positive figures, it’s crucial to keep in mind that non-food store sales volumes are still 2.7% below their pre-pandemic levels. The industry is still grappling with the aftermath of the pandemic and facing challenges across various sectors.
Helen Dickinson, Chief Executive of the British Retail Consortium, highlighted that while cosmetics and toiletries performed well, categories like household electrical appliances, household goods, and furniture experienced weak growth during the Black Friday month. This suggests that consumers are being cautious with their spending and prioritizing smaller indulgences.
Jacqui Baker, head of retail at consulting firm RSM UK, emphasized the importance of sales events during these financially challenging times. She emphasized the positive impact of early Black Friday offers and the overall improvement in consumer confidence and the economy.
The article concludes by mentioning the “lipstick effect,” which continues to boost cosmetic sales with a remarkable 14.1% overall growth. This phenomenon refers to the tendency of consumers to treat themselves to small indulgences, like cosmetics, during challenging economic times.
In conclusion, while there was a rise in UK retail sales in November, the industry still faces obstacles that need to be overcome. The impact of the pandemic remains evident, and retailers must continue to adapt and find innovative strategies to attract consumers and boost profits.
Useful links:
– Office for National Statistics – UK Retail Sales in November 2021
– British Retail Consortium
