Unexpected Dip in London Black Friday and Pre-Christmas Retail Sales
In a surprising turn of events, the December Office for National Statistics (ONS) retail sales report has revealed a decrease in sales volumes by 0.3% compared to the previous month. This drop has sent ripples of concern through the retail industry, especially as these figures cover the crucial period from November 24th to December 28th, including the highly anticipated Black Friday sales.
Food stores, ranging from supermarkets to specialty shops, experienced the most significant decline with sales volumes plummeting by 1.3%. According to David Jinks M.I.L.T., Head of Consumer Research at Parcelhero, this marks the lowest index level for food stores since April 2013. On the bright side, clothing stores saw a remarkable surge in sales volumes, increasing by 4.4% as shoppers splurged on fashion items for gifting and festive occasions. Department store sales volumes also showed a positive uptick of 1.2%.
Despite the overall dip in sales volumes, the year-on-year comparison paints a more optimistic picture with a 3.6% increase from December 2023. Online spending values experienced a notable 1.5% rise in December, marking the first monthly increase since September. This boost in online sales was particularly evident in clothing and footwear sectors with a 7.2% increase in sales values.
Upon closer inspection, the reported figures have been adjusted to account for the inclusion of Black Friday sales this year, which were absent in the previous year’s data. When this seasonal adjustment is removed, sales volumes actually saw a significant 10% increase from November.
Despite the decline in sales volumes, there is a silver lining in the form of a 0.1% rise in total spending in December, encompassing both in-store and online purchases. The proportion of online sales also saw a slight increase from 26.5% in November to 27% in December, indicating a growing trend towards e-commerce.
As the retail landscape continues to evolve, the importance of a combined High Street and online presence becomes increasingly evident. Parcelhero’s report “2030: Death of the High Street” has sparked discussions in Parliament, highlighting the need for retailers to adapt to changing consumer behaviors and preferences in the digital age.
How will this unexpected dip in sales impact retailers in the upcoming year? Share your thoughts and insights below.
