Responding to the latest ONS Retail Sales Index
figures, which showed sales up 0.2% by
value, and up 0.1% by volume, Kris Hamer, Director of Insight at
the British Retail Consortium, said:
“After a positive start to the Golden Quarter, November
sales stagnated, with higher energy bills and low consumer
sentiment impacting spending. Clothing suffered from a fall in
sales, with milder weather putting many off updating their winter
wardrobe. Consumers were also holding out for the main black
Friday sales week to pick up beauty and electrical deals, which
saw their first falls of the year. The final two months of the
year account for over one-fifth of all sales, making it a period
of vital importance – particularly for non-food. With a weak
November performance, retailers will hope that shoppers come out
in force in the final days before Christmas.
Given the shaky start to the festive season, retailers
will be looking at the £7bn in new costs from the Budget
facing the industry in 2025 with increased
concern. Higher employer national insurance
contributions, a higher National Living Wage, and a new packaging
levy will heap pressure on an industry that is already paying
more than its fair share of tax. With sales growth unable to keep
pace, retailers will have no choice but to raise prices or cut
costs – closing stores and freezing recruitment. To mitigate
this, Government must ensure that its proposed business rates
reform does not result in any shop paying higher rates than they
already do.”
-ENDS-
According to the ONS, on a
Year-on-year seasonally adjusted basis:
- Sales by Value (amount spent) increased 0.2% YoY
- Sales by Volume (quantity bought) increased 0.1%
YoY
