BDO’s latest High Street Sales Tracker shows that total retail sales in discretionary spend categories fell by 5.3% in November, marking the worst performance for the sector since January 2021.
The accountancy firm’s report shows negative sales growth both in-store and online, compared to a poor performance in November 2023, when overall sales declined 0.3%.
Trading was particularly poor online, with sales down 7.8%. In-store sales fell by 5.5%, with the fashion sector recording particularly disappointing figures, down 8.0% compared to the same month last year.
“These results are disastrous for the retail sector, with just one more month of the so-called ‘Golden Quarter’ left,” said Sophie Michael, Head of Retail and Wholesale at BDO.
“Despite the hype around events such as Black Friday and Cyber Monday, we’ve seen heavy and prolonged discounting throughout most of November, but this has failed to get consumers spending.
“All retailers and, particularly those operating within the discretionary spend category, will face an even tougher first quarter in 2025 should this sales trajectory continue into the final weeks of this year.”
She added: “The industry has been very vocal about the detrimental impact that some of the measures announced in the Autumn Budget will have on their cashflow and on their bottom line from next Spring. This sense of economic anxiety seems to have reached consumers, too with the cost of living still higher than it has been in previous years and recent announcements about further rises to energy prices.
“Within this festive period, retailers also continue to face increasing competition for the consumer purse, with many customers prioritising spend on leisure and hospitality experiences.
“As a result, the industry is calling on the government to take note and work with the sector and its supply chain to alleviate some of the upcoming heavy burdens as it looks ahead to a very rocky 2025.”
NAM Implications:
- “All retailers and, particularly those operating within the discretionary spend category, will face an even tougher first quarter in 2025” – says it all, Rachel…
