Business

Black Friday boosts slowing retail sales growth

Black Friday shoppers boosted November's retail figures
Black Friday shoppers boosted November's retail figures Black Friday shoppers boosted November's retail figures

RETAIL sales growth slowed last month despite a major boost from Black Friday and early Christmas shoppers.

The overall rate of growth slowed to 5.9 per cent year-on-year from October's 7.2 per cent (a 14-year high), Office for National Statistics figures show.

Fuel sales dropped to their lowest levels in two years since the fastest price rise since 2011.

However, the figures are being seen as positive by analysts despite annual sales growth being slower than anticipated.

ONS senior statistician Kate Davies said: "Retailers saw continued growth in the run up to Christmas. Department stores and household goods stores had a particularly strong month, especially in sales of electronic goods, boosted by Black Friday deals.

"Annual growth in fuel sales, however, was at its lowest level for almost two years as prices increased at the fastest rate since 2011."

Retail sales volumes were up just 0.2 per cent compared with 1.8 per cent growth in October, with clothing sales dropping by 1.4 per cent after strong growth the previous month when the weather became colder.

The amount spent online increased by 24.9 per cent compared with November last year and by 3 per cent compared with October 2016.

Graeme MacLaughlin, relationship director at Barclays in Northern Ireland said the retail industry had "delivered the goods again in November".

"As much as we would like to assert what this means for Christmas trading overall, we have to wait to see the year-end numbers to draw firmer conclusions," he said.

"However, as our recent research showed, retailers were optimistic entering the Christmas period and are demonstrating a more sophisticated approach to Black Friday, with an increasing number resisting the phenomenon altogether.

"Coupled with some retailers opting for shallower reductions over a longer period may mean that this year many have avoided the damaging trend of simply shifting Christmas sales forward to November at lower margins, which makes the headline numbers for November all the more impressive."