According to the latest figures released by the Office for National Statistics (ONS), November 2016 saw almost 6% volume growth compared to the same time last year, with the largest contribution coming from non-store retailing.
Compared with October 2016, the quantity bought was estimated to have increased by 0.2%, with a mixed picture across store types.
The amount spent (value) in the retail industry increased by 5.9% compared with November 2015 and increased by 0.5% compared with October 2016, the ONS adds. The amount spent online increased by 24.9% compared with November 2015 and by 3.0% compared with October 2016.
In household goods stores, all sub-sectors showed increases in both the quantity bought and amount spent. The largest increase was reported by electrical household appliances, where month on month the quantity bought increased by 19.1% and the amount spent increased by 20.4%. The ONS cited feedback from retailers supporting the fact that sales of electrical goods in particular had been boosted due to Black Friday sales in the month.
Close Brother Retail Finance managing director Alex Marsh was among those to comment on the ONS figures.
“Despite the uncertainty the UK has experienced in the wake of the Brexit vote, consumers continue to defy expectations and are spending on the high street, helping retailers end the year on a high note,” he said. “Strong sales on Black Friday and Cyber Monday helped the November figures, with our data showing that the average spend for electrical goods alone on Black Friday was twice as high as any other day in 2016. Retailers will hope this consumer confidence continues over the Christmas period.
“While the longer-term impact of the referendum is still unclear, the impact of inflation may have an immediate impact on consumer confidence as the knock on effect is rising prices in 2017. This will be a challenge for retailers, who need to adapt to meet changing demands and use the right tools to mitigate against fluctuations in consumer spending power on the horizon. This includes offering the right finance options which gives their customers the option to spread the cost of purchases in order to make products more affordable and accessible”.
Wilkins Kennedy head of retail and wholesale Phil Mullis commented: “Black Friday has certainly contributed to the amount of household goods sold last month as these are the typical best sellers during this event.
“However, in general, retailers are not discounting as much as they were. We can already see evidence of this in the clothing and footwear sector – one that has traditionally struggled to keep up with changeable weather and seasonal demand. Since the colder weather set in for November, there were shivers to be felt as people paid more for their winter coats than before.
“There is hope that December retail sales should continue the upward trend. Low inflation means there is more money in people’s pockets to spend on Christmas presents, although will this be fuelled by increased consumer borrowing while credit remains relatively inexpensive? We also have Christmas Eve falling on a Saturday so there will be a chance for some last-minute shopping helping to bring us all a very Happy Christmas!”
