Physical stores key as UK retailers benefit from Black Friday
American shopping event Black Friday has become a month long affair in the UK, with deals spread over a longer period than ever before, according to research from the BRC and KPMG.
Total UK retail sales increased by 5% in November, against a rise of 0.9% in November 2020. This is above the three-month average growth of 2.2% and the 12-month average growth of 9.9%.
“As people prepared their wardrobes for the cold weather this winter, consumers took advantage of discounted clothing, shifting the focus of Black Friday from just electronics and household appliances,” says Helen Dickinson OBE, Chief Executive at British Retail Consortium.
“While e-commerce was significantly down on last year, when lockdown pushed more consumers online, it still remains almost one-fifth up on pre-pandemic levels, accounting for almost half of all non-food spend.”
Paul Martin, UK Head of Retail at KPMG, says: “The high street dominated sales growth during November as consumers buoyed by the continued roll-out of the vaccine programme, and eager to ensure they secured the gifts they want for Christmas, headed for physical stores to do their festive shopping. Online sales fell yet again in November, with only clothing sales seeing minor positive growth.”
He adds: “Retailers will be hoping consumer confidence continues this month, while keeping close to government Covid-19 updates, as we head to the vital few shopping weeks before Christmas.”
“As we look ahead to the new year, rising costs continue to bite into margins and supply chain issues have impacted the availability of goods, leaving retailers with very little room for the mega discounting events we have seen in previous January sales.”
“Rising inflation which could top 4% + by the end of this year, is likely to prompt an interest rate rise sooner rather than later, which could dent consumer confidence and spending.”
