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LONDON (Reuters) – British retailers reported lacklustre gross sales in November, in keeping with trade information on Tuesday affected by the timing of the Black Friday gross sales, though it nonetheless pointed to weakening shopper confidence.
Gross sales volumes dropped by 3.3% within the 12 months to November, the weakest studying since April after they fell 4.0%, and beneath a rise of 0.6% within the yr to October, the British Retail Consortium stated.
Final month’s decline mirrored the truth that this yr’s information didn’t embody Black Friday gross sales in late November, which shall be mirrored within the December numbers, although they have been included in final yr’s comparability.
“Whereas it was undoubtedly a nasty begin to the festive season, the poor spending figures have been primarily all the way down to the motion of Black Friday into the December figures this yr,” Helen Dickinson, the BRC’s chief government, stated.
“Even so, low shopper confidence and rising power payments have clearly dented non-food spending.”
The regulated value cap on family power elevated by 10% in October.
The BRC stated non-food gross sales fell 2.1% year-on-year within the three months to November, reflecting a decline in spending on winter clothes. Meals gross sales elevated by 2.4% in the identical interval.
British customers have additionally needed to deal with excessive rates of interest from the Financial institution of England in response to a soar in inflation throughout 2022. The BoE is predicted to maintain rates of interest on maintain at 4.75% later this month after chopping Financial institution Fee in August and November.
Separate information from Barclays (LON:BARC) on Tuesday confirmed the most important annual drop in important spending in over 5 years, which contracted by 3.1% in November.
Barclays stated the autumn was attributable to a slowdown in grocery store spending, which decreased 1.8%. In distinction, spending on non-essential gadgets rose by 0.8%, pushed largely by a 22.8% enhance in spending on cinema tickets together with for Gladiator II, Paddington in Peru and Depraved motion pictures.
Total, shopper spending on Barclay’s debit and bank cards fell by 0.5% in November, the primary decline since July.
“Understandably, numerous elements weighed on shopper spending in November, notably easing shopper confidence post-summer, and expectations that post-Price range, inflation and rates of interest will keep increased within the coming months,” Jack Which means, chief UK economist at Barclays, stated.
Barclays stated retail and general transactions on Black Friday elevated 9.5% in comparison with Black Friday 2023, with general transactions reaching the best up to now this yr.
