Online spending went up by 37.5% from last year, while total retail sales up 2.2% against same time in 2013
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| Originating in the USA as a sales day that following the Thanksgiving holiday, Black Friday is becoming an increasingly popular shopping day in the UK. Photograph: Rob Stothard/Getty Images |
The monthly snapshot of high street and internet consumer
activity from the British Retail Consortium and KPMG found that the
one-day promotional extravaganza lifted sales out of a normal November
lull.
Barclaycard said Friday 21 November was the highest spending day on record, with online sales up by 37.5% on a year earlier. The BRC said internet shopping accounted for more than one pound in every five spent last month and that retailers whose online systems were found wanting had paid the price.
Helen Dickinson, the BRC director general, said: “November’s retail sales demonstrate continued growth in sales across the board compared with last month. The huge demand for bargain TVs and other household appliances on Black Friday, whether for personal use or as presents, meant that electrical items were the standout category in terms of sales growth.
“However, retailers also took advantage of the increased footfall generated by Black Friday to sell clothing, effectively bringing forward the start of Christmas sales reductions of autumn/winter stock.”
The squeeze on real incomes caused by prices rising faster than wages has meant consumers have taken a cautious approach during the autumn, with the unusually warm weather an additional problem for clothing and footwear retailers. Retailers are now hopeful that the strong start to the crucial Christmas and new year period will be sustained throughout.
Consumer spending power is growing thanks to falling inflation and the boost to disposable incomes provided by lower energy prices, which have resulted in higher household disposable incomes. The cost of Brent crude fell almost 4% on Monday to $66.50 – a fall of more than 40% since its peak in the summer.
The BRC said that once additional floor space had been taken into account, like-for-like sales were 0.9% higher last month than in November 2013. Total sales were 2.2% higher.
Household appliances – the sector in which Black Friday discounting was particularly aggressive – was the best-performing category, followed by furniture and the home categories.
Online sales of non-food products in the UK grew 12.0% in November against a year earlier and represented 21% of all non-food sales – the highest penetration since the BRC started to log internet sales in December 2012.
Dickinson said: “This month brings fantastic news for retailers who have worked hard on their online presence, as the online penetration rate of non-food sales is at an all-time record. Every £1 in £5 of non-food purchases is spent online. Online sales are also contributing a larger proportion of growth to non-food sales compared with in-store.”
Dickinson added that the high volume of traffic to websites meant that consumers also bought a large amount of full-priced items as well as those on sale. Online sales growth had been distorted by Black Friday, with consumers holding off from spending until the end of the month in the hope of grabbing a bargain.
David McCorquodale, head of retail at KPMG, said: “Consumers were reluctant to spend too much, too soon until a record-breaking Black Friday helped to kick-start festive spending. Fashion and footwear retailers used this occasion to recover some lost ground, but at a cost to their margin. Sales of electrical goods were strong all month and positively rocketed with Black Friday offers.
“Sadly, some retailers fell short of the mark, with websites crashing under the pressure of shoppers hunting for a bargain. Resolving these issues must be a priority: consumers go online to avoid queues, not join them.”
Barclaycard said consumers spent 18% more than they did on the same day last year to get hold of the best deals in the run-up to Christmas.
“Spending was up significantly online and in store as retailers offered discounts through both channels, but consumers increasingly took to the web to secure the best deals and avoid the crowds. Online spending was 37.5% higher than last year’s Black Friday, and the level of spending was up so much that it shifted the proportion of total online spending so far this season by 4 percentage points to 25.8%.”
Barclaycard said Friday 21 November was the highest spending day on record, with online sales up by 37.5% on a year earlier. The BRC said internet shopping accounted for more than one pound in every five spent last month and that retailers whose online systems were found wanting had paid the price.
Helen Dickinson, the BRC director general, said: “November’s retail sales demonstrate continued growth in sales across the board compared with last month. The huge demand for bargain TVs and other household appliances on Black Friday, whether for personal use or as presents, meant that electrical items were the standout category in terms of sales growth.
“However, retailers also took advantage of the increased footfall generated by Black Friday to sell clothing, effectively bringing forward the start of Christmas sales reductions of autumn/winter stock.”
The squeeze on real incomes caused by prices rising faster than wages has meant consumers have taken a cautious approach during the autumn, with the unusually warm weather an additional problem for clothing and footwear retailers. Retailers are now hopeful that the strong start to the crucial Christmas and new year period will be sustained throughout.
Consumer spending power is growing thanks to falling inflation and the boost to disposable incomes provided by lower energy prices, which have resulted in higher household disposable incomes. The cost of Brent crude fell almost 4% on Monday to $66.50 – a fall of more than 40% since its peak in the summer.
The BRC said that once additional floor space had been taken into account, like-for-like sales were 0.9% higher last month than in November 2013. Total sales were 2.2% higher.
Household appliances – the sector in which Black Friday discounting was particularly aggressive – was the best-performing category, followed by furniture and the home categories.
Online sales of non-food products in the UK grew 12.0% in November against a year earlier and represented 21% of all non-food sales – the highest penetration since the BRC started to log internet sales in December 2012.
Dickinson said: “This month brings fantastic news for retailers who have worked hard on their online presence, as the online penetration rate of non-food sales is at an all-time record. Every £1 in £5 of non-food purchases is spent online. Online sales are also contributing a larger proportion of growth to non-food sales compared with in-store.”
Dickinson added that the high volume of traffic to websites meant that consumers also bought a large amount of full-priced items as well as those on sale. Online sales growth had been distorted by Black Friday, with consumers holding off from spending until the end of the month in the hope of grabbing a bargain.
David McCorquodale, head of retail at KPMG, said: “Consumers were reluctant to spend too much, too soon until a record-breaking Black Friday helped to kick-start festive spending. Fashion and footwear retailers used this occasion to recover some lost ground, but at a cost to their margin. Sales of electrical goods were strong all month and positively rocketed with Black Friday offers.
“Sadly, some retailers fell short of the mark, with websites crashing under the pressure of shoppers hunting for a bargain. Resolving these issues must be a priority: consumers go online to avoid queues, not join them.”
Barclaycard said consumers spent 18% more than they did on the same day last year to get hold of the best deals in the run-up to Christmas.
“Spending was up significantly online and in store as retailers offered discounts through both channels, but consumers increasingly took to the web to secure the best deals and avoid the crowds. Online spending was 37.5% higher than last year’s Black Friday, and the level of spending was up so much that it shifted the proportion of total online spending so far this season by 4 percentage points to 25.8%.”
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