UK retail sales improve despite weaker trading at clothing stores

People shopping on Regent Street in London (Yui Mok/PA) - (PA Wire)

British retailers returned to growth last month despite clothing stores reporting their weakest trading for almost three years.

Economists said this was offset by a stronger month for supermarkets in the run up to Christmas.

Retail sales volumes, which measure the quantity bought, increased by 0.2% in November, the Office for National Statistics (ONS) said.

It comes after retailers witnessed a 0.7% decline in October.

(PA Graphics) (PA Graphics)

The rise in November was weaker than expected, with economists having predicted a 0.5% uplift.

The ONS said this came after clothing and footwear retailers reported that sales volumes dropped by 2.6% for the month, taking them down to the lowest monthly level since January 2022.

However, this was largely offset by a 0.5% rise in sales across food and drink retailers, driven by major supermarkets.

Household goods retailers also had a stronger month, with sales rising by 1.1% in November on the back of significant improvement among furniture stores.

(PA Graphics) (PA Graphics)

Elsewhere, online retail sales slipped for the second month in a row despite discounting ahead of Black Friday.

ONS senior statistician Hannah Finselbach said: “Retail sales increased slightly in November following last month’s fall.

“For the first time in three months there was a boost for food store sales, particularly supermarkets.

“It was also a good month for household goods retailers, most notably furniture shops.

“Clothing store sales dipped sharply once again, as retailers reported tough trading conditions.”

Nicholas Found, senior consultant at Retail Economics, said: “November brought mixed fortunes for retail, impacted by Black Friday, as weak consumer confidence is seeing shoppers hold out for promotions.

“Anxiety following the Autumn Budget combined with a mild start to November delayed spending on seasonal items, including a sharp decline in clothing volumes.

“It is critical delayed spending materialises this Christmas to mitigate the poor start to retail’s all-important festive season. However, cautiousness lingers, slowing momentum in the economy.”