Spending on coughing and cool treatments was a brilliant area in November as weak customer self-confidence and climbing power costs triggered anxiousness for stores in the critical run-up to Christmas.
A later on Black Friday this year, causing unnaturally weak November numbers, still can not camouflage numbers recommending it is “unlikely to be a bumper Christmas for all” as lots of customers stay concentrated on budgeting, experts recommend.
The British Retail Consortium (BRC)- KPMG Retail Sales Monitor covering the 4 weeks to November 23– as a result not consisting of Black Friday, unlike in 2015’s numbers for the very same duration– reveal complete UK sales dropped by 3.3% year on year, versus development of 2.6% last November.
Food sales over the 3 months to November were up 2.4% year on year, although this as well was down on in 2015’s development of 7.6%.
Sales of items apart from food were down 2.1% year on year over the 3 months to November, versus a decrease of 1.6% a year back.
BRC president Helen Dickinson stated: “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.
“Retailers will be hoping that seasonal spending is delayed, not diminished, and that customers get spending in the remaining weeks running up to Christmas.”
Sarah Bradbury, president of experts IGD, stated: “IGD’s latest research highlights signs of festive cheer, with 5% more shoppers than last year – 41% versus 36% – planning to spend what they want this Christmas.
“However, despite this uplift, it’s unlikely to be a bumper Christmas for all, as many remain focused on budgeting.
“The festive optimism is there, but the underlying caution means spending will still be influenced by economic pressures, especially on out-of-home activities.”
Separate numbers from Barclays reveal customer card investing was down by 0.5% year on year in November– the initial decrease considering that July.
Essential investing dropped by 3.1%, its steepest autumn in greater than 5 years.
However, total investing on amusement was up 10.8%, with reservations for hit movies Gladiator II, Wicked and Paddington In Peru seeing movie theater investing raising by 22.8% year on year.
The Barclays Consumer Spend record additionally reveals retail experienced a time-out in the run-up to the seasonal sales duration after a three-month run of development, down 2% as November’s cold wave obstructed high road step.
