ONS: Retail Sales Fell In November

The ONS has published retail sales data for November, the reporting period covering 30 October to 26 November 2022. The official Black Friday day of promotion was on 25 November and is included within the reference period. However, Cyber Monday will be included in December's release as it took place on 28 November. 

• Retail sales volumes are estimated to have fallen by 0.4% in November 2022 following a rise of 0.9% in October (revised from a rise of 0.6%) when there was a bounce back from the impact of the additional Bank Holiday in September for the State Funeral.

• Retail sales values, unadjusted for price changes, rose by 0.5% in November 2022, following a rise of 1.7% in October 2022. When compared with the pre-coronavirus (COVID-19) level in February 2020, total retail sales were 14.8% higher in value terms, but volumes were 0.7% lower.

• Compared with the same period a year earlier, retail sales volumes fell by 6.2% in the three months to November 2022, while sales values rose by 4.4%.

• Non-store retailing (predominantly online retailers) sales volumes fell by 2.8% in November 2022, continuing a downward trend seen since early 2021, as the wider economy reopened and people could return to shopping in store; they are still 18.2% higher than their pre-coronavirus (COVID-19) February 2020 levels.

• Automotive fuel sales volumes fell by 1.7% in November 2022, following a rise of 3.2% in October; these were 8.7% below their February 2020 levels.

• Non-food stores sales volumes fell by 0.6% in November 2022 and were 1.8% below February 2020 levels.

• The sub-sector of other non-food stores reported a monthly fall in sales volumes of 6.2% because of strong falls in second-hand goods stores (particularly auctioning houses) and computer stores.

• Clothing stores sales volumes rose by 2.1% in November 2022, mainly because of growth in footwear stores, but remained 2.0% below their February 2020 levels.
  
  

• Department store and household goods store retailers reported increased sales in November 2022. Several retailers reported longer Black Friday sales, as offers over the whole month of November potentially contributed to the increase in sales.  

• Department stores sales volumes rose by 1.7% over the month, while household goods stores (such as furniture stores) sales volumes rose by 4.4% in November 2022.

• Food store sales volumes rose by 0.9% in November 2022 with anecdotal evidence from retailers suggesting that customers stocked up early for Christmas.

• Online spending values rose by 0.6% in November 2022, because of monthly increases across all industries except other non-food stores.

• The value of online spending increased at a similar rate to retail sales as a whole, so the proportion of online sales remained unchanged at 26.2% in November 2022. The proportion of retail sales online has remained broadly consistent at around 26.0% since May 2022.

Responding to the latest ONS Retail Sales Index figures, Helen Dickinson, Chief Executive of the British Retail Consortium, said:

“Sales growth failed to keep pace with inflation as sales volumes dropped for the eighth month in a row. Black Friday provided a small boost to retailers, but there are signs that many consumers are holding off Christmas spending until the last moment. Retailers may be slightly reassured by the marginal improvement in consumer confidence, but it remains well below levels seen even at the height of the pandemic due to the ongoing cost of living squeeze. There was stronger growth for furniture, floors and textiles, as households chose to concentrate on improving the home ahead of Christmas. But, many retailers will be holding their breath as they look to the hugely important December sales period.

“Given the pressure currently bearing down on the retail industry from higher energy and input costs, it is vital Government provides support for retailers as it puts in place future arrangements for the EBRS from April 2023. Without clear targeted support, retailers will see their costs – and potentially prices – climb even higher.”

Source : ONS, BRC

Image : Jason Batterham / Shutterstock.com (671551474)

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