Data published by the Office for National Statistics (ONS) showed that retail sales increased by 0.2% in November, recording the 4th growth in the last 5 months. However, economists had expected sales to grow by 0.5%. Growth in supermarkets and other non-food stores was partly offset by a fall in clothing retailers. For the three-month period (through November), sales volumes rose by 0.3% when compared with the three months to August.
Meanwhile, in November, retail sales excluding fuel increased by 0.3% after falling by 0.9% in October. Consensus estimates suggested that sales will remain unchanged.
The data also showed that, in annual terms, retail sales increased by 0.5% in November, slowing compared to October (+2.0%, revised from +2.4%). Economists had expected an increase of 0.8%. When compared with their pre-coronavirus pandemic level in February 2020, volumes were down by 1.6%.
The ONS said that non-food stores sales volumes, the total of department, clothing, household and other non-food stores, rose by 0.2% in November, with a strong positive contribution from other retail sales (not elsewhere specified). This sub-sector rose by 7.9%, rebounding from a 7.1% fall in October. Meanwhile, clothing stores sales volumes fell by 2.6%, following a 3.5% fall in October. This left clothing stores sales volumes at their lowest level since January 2022, with retailers reporting that economic factors were affecting sales. Food stores sales volumes increased by 0.5%, most strongly within supermarkets.
The data also showed the amount spent online, known as online spending values, fell by 4.3% on a monthly basis (the sharpest drop since March 2022) and by 3.1% per year. The proportion of online sales decreased to 26.2% from 27.5% in October, reaching its lowest level since February.