Retail sales pick up as shoppers shake off Brexit blues

November saw UK retail sales decrease by 4.4%, against an increase of 0.5% in November 2018, according to research by the BRC and KPMG. However, 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.

“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,” says Helen Dickinson, Chief Executive at British Retail Consortium.

“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.”

The next government must be ready to hit the ground running following the general election on 12th December, she adds. “If they wish to see retail spending remain healthy in 2020 it is essential they clarify our future relationship with the EU as soon as possible. If consumers are to avoid price rises, and reduced availability, politicians must put frictionless, tariff-free trade at the top of their new agenda.”

“The key question will be whether demand can rebound enough to make up for several disappointing months of trading this year. Grocers are likely to have weathered the storm better than most but Black Friday is key to many non-food categories,” comments Paul Martin, UK Head of Retail at KPMG.

“Retailers have their foot to the floor during this critical trading period, but it won’t be until Christmas trading reports land in January that we’ll truly know whether their strategies have proved fruitful.”