Black Friday fails to lift high street gloom
Written by News on 04/12/2018
Black Friday failed to deliver a big enough boost to lift the beleaguered high street last month as like-for-like retail sales fell 0.5%, according to industry figures.
The report from the British Retail Consortium (BRC) and KPMG said weak consumer demand – compounded by Brexit uncertainty – meant stores face a “nerve-wracking run-up to Christmas”.
It comes a day after Sports Direct and House of Fraser tycoon Mike Ashley painted a bleak picture of the state of the high street – saying in many areas it was already dead and proposing an internet sales tax to help bricks and mortar stores compete against the likes of Amazon.
Last month’s sales decline was the worst since October 2017 – excluding figures from this April which were distorted by the timing of Easter.
It was the first time that like-for-like sales have fallen in November – a month that has become crucial for many retailers because of Black Friday – since 2015.
The figures also revealed how Black Friday has become an increasingly digital event, with a record one-in-three pounds worth of non-food purchases made online during the month, the BRC said.
BRC chief executive Helen Dickinson said: “Black Friday week itself was bigger than last year, but did little to lift the overall pace of spending, with sales growth in November falling to its lowest rate in seven months.
“Weak consumer demand and falling confidence mean that retailers are in for a nerve-wracking run-up to Christmas.
“Conditions in the industry have been particularly tough since the vote to leave the EU in 2016 and the current uncertainty has only compounded the challenges.
“Only when the UK secures a transition period with the EU that ensures tariff-free, frictionless trade will retailers be able to breathe a sigh of relief.”
KPMG retail director Sue Richardson said: “Aggressive promotional activity around Black Friday failed to lure shoppers. It’s clear that growth remains elusive for many retailers.”
However she pointed out that some of the benefit of the Black Friday weekend was not factored into the figures, which covered the four weeks to 24 November – missing out Cyber Monday on 26 November.
(c) Sky News 2018: Black Friday fails to lift high street gloom
