UK retail sales fall 3.3% YoY in November 2024: BRC

The UK's total retail sales decreased by 3.3 per cent year on year (YoY) in November 2024, a sharp contrast to the 2.6 per cent growth recorded in November 2023. This decline was below the three-month average growth of -0.1 per cent and the 12-month average growth of 0.5 per cent.

Non-Food sales painted a bleaker picture, declining 2.1 per cent YoY over the three months to November, compared to a 1.6 per cent decline in November 2023. Despite this, the decline was marginally better than the 12-month average drop of 2.2 per cent. For the month of November, non-food sales remained in YoY decline.

In-store non-food sales over the three months to November dropped 2.2 per cent YoY, reversing the 2.2 per cent increase seen in November 2023, though this was still better than the 12-month average decline of 2.5 per cent.

Meanwhile, online non-food sales experienced a significant drop, falling 10.3 per cent YoY in November, a stark contrast to the average decline of 2.1 per cent recorded in November 2023. This decline outpaced the three-month average decrease of 1.7 per cent and the 12-month average fall of 1.5 per cent, according to BRC.

The online penetration rate for non-food items decreased to 40.6 per cent in November, down from 41.4 per cent in November 2023, though it remained above the 12-month average of 36.4 per cent.

Helen Dickinson, chief executive at the BRC, said: “While it was undoubtedly a bad start to the festive season, the poor spending figures were primarily down to the movement of Black Friday into the December figures this year. Even so, low consumer confidence and rising energy bills have clearly dented non-food spending. Spending on fashion was particularly weak as households delayed purchases of new winter clothing, while health spending was boosted by the season’s arrival of coughs and colds.”

Dickinson further added “Retailers will be hoping that seasonal spending is delayed not diminished and that customers get spending in the remaining weeks running up to Christmas. If not, retailers will be feeling the squeeze from both sides as reduced revenues are met with huge additional costs next year. The Budget, as well as the introduction of new packaging levies, will cost retailers over £7 billion extra next year. How effectively the government works the industry to mitigate these costs will determine the extent of price rises and job losses in the future.”

Linda Ellett, UK head of consumer, retail and leisure, KPMG, said: “Along with the cold snap at the end of the month, retail sales also went into minus numbers for November. While the majority of November’s data tells a disappointing tale for the retail sector, this reporting didn’t include Black Friday week, so the hope for retailers is that consumers were being savvy shoppers and that the promotional push in the last days of the month saw held-back consumer spend materialise and mitigate what is otherwise a disappointing month. If not, then we may see some retailers launching Christmas sales early.”

Fibre2Fashion News Desk (HU)