After what the country has gotten used to over the past twelve months, the strictures that Ramadan brings with it will perhaps seem easier to bear this year, as Muslims fast from dawn to dusk for a month.
By a happy coincidence (which we hope will remain so, in the interim) Ramadan this year will begin in the evening of Monday, 12 April, exactly the date when many of the most severe lockdown restrictions come to an end and shops begin to re-open. Weather permitting, it may well be possible to celebrate the end of the day outdoors at a restaurant if so desired!
By the time Ramadan ends a month later, in the evening of Wednesday, 12 May, life should feel a lot more normal again, and we can probably look forward to the most joyous Eid the country has ever seen.
With each year that passes, Ramadan becomes more of a settled item in the calendar of UK life, and the market for products suitable and in demand during the period of reflection becomes more widespread.
“With nearly 2.8 million Muslims in the UK, there will be many people taking part in Ramadan across the country this April and May, presenting a real opportunity for independent retailers to be a port-of-call throughout the period and drive maximum sales,” says Bestway Wholesale’s Trading Director, Kenton Burchell.
Last year we pointed out how, in retail terms, Ramadan is bit of a contradiction. On one hand it is a (lunar) month-long period when your target customers don’t eat anything during daylight hours, therefore threatening sales and revenue. On the other, it is an ongoing festival season where every night a welcome celebration meal – the Iftar, which means to break a fast – takes place to make up for all the food and drink that didn’t pass the lips during daylight hours since the pre-dawn Suhoor meal.
It makes for an interesting merchandising period, when impulse sales will be spurred on by genuine hunger and anticipation as observers of the daily fast hurry home to start cooking and eating.
Additionally, this year, we must take into account the incredible shift in spending that has taken place during the pandemic, from larger supermarkets to local shops, as people stay home and buy items in smaller amounts, more frequently, in their close neighbourhoods.
It was an unforeseen change that has very much benefitted the revenues of the convenience sector, and can be made even more profitable by stocking the right goods for Ramadan and merchandising them to best effect.
Clearly then, the key to winning in Ramadan is the careful planning and marketing of the best range of temptations for the hungry shopper – those that will give the greatest satisfaction in the very near future when the sun goes down, and which they will likely stock up on before-hand.
The Ramadan sales boost is legendary and can go as high as 70 per cent year on year, so it is definitely worth making the extra effort.
And again, as each year passes, Ramadan – like other World Food occasions – becomes more embedded in the UK multicultural calendar. Ramadan offers very many opportunities for the independent sector and significant incremental sales are a real possibility.
Planning the Iftar
Dried fruits, crisps and snacks, fruit juices, and staples such as rice, pulses and breads, will be the mainstay of the Ramadan impulse aisle – and don’t neglect sweets and pastries, tea and coffee, which often round off the evening meal. Main meal ingredients can be placed on promotion for extra sales.
For the Iftar, it’s quite common and traditional for dates to be eaten before the main meal. Retailers should look to stock these, along with other dried fruits, which provide natural sugars to help restore depleted energy, and which are favourite traditional delicacies.
Following the appetisers, the dishes begin to be brought out, often starting with smaller ones. “A series of snacks are often cooked, such as paneer fritters or vegetable samosas, along with meat and vegetable spicy dishes accompanied by rice and breads,” says Burchell. “Therefore, running special offers across chilled halal meats will help encourage multiple purchases.”
The London-based Mediterranean food specialist Dina Foods, which is a big supplier to Muslim communities, sees sales of its Medjoul dates, Baklawa, Falafel and other savouries, as well as pitta breads and wraps, boom before and during the Islamic holy month, says Dina Foods Managing Director Mr Suheil Haddad.
Photo: iStock
As the leading Baklawa producer in the UK, Dina Foods offers high quality products made to authentic recipes that have been handed down through the generations. All are highly popular during Ramadan and of course Eid, particularly with Dina Foods providing a specialty “Baklawa Ramadan” line.
The company’s range of savouries such as falafel, vine Leaves, kibbeh (wheat, onions, and ground beef formed into football shaped croquettes), sfiha (flatbread cooked with a minced meat topping), Hummus and Baba Ganoush also hits the mark during the Islamic holy month.
Falafels come in a range of irresistible flavours, including Dina Food’s best-selling sweet potato version,together with a chilli and coriander variant. Its entire savouries range also recently attained Vegan Society certification.
Nutrition – especially under conditions of the pandemic, when it is important to keep both your health and immune system at their resilient best – means that fresh fruit and vegetables are also key for Ramadan, to help add nutrients and vitamins after the daytime fasting.
“Drinking plenty of fluids, as well as consuming fluid-rich foods, such as fruit, vegetables, yogurt, soups and stews, is very important to replace fluids lost during the day and to start the next day of fasting well hydrated,” agrees the British Nutrition Foundation.“Salt stimulates thirst and so it’s a good idea to avoid consuming a lot of salty foods. The pre-dawn meal, Suhoor, provides fluids and energy for the day of fasting ahead, so making healthy choices can help you to cope better with the fast”
“A healthy, natural fruit smoothie is an ideal Suhoor beverage, or vegetable soups are an ideal appetiser to help break Iftar,” adds Burchell, and suggests that retailers ensure they have fully stocked fresh fruit and vegetable fixtures.
And the merchandising should shout out about that delicious treats are available: “It’s not just about what retailers do inside the shop, it’s also important to ensure passing trade are aware retailers have plenty of Ramadan products to help entice shoppers through the doors. Utilising window space and marketing the special offers running on dedicated products will help to attract customers in and maximise sales during this time.”
It goes without saying that the finest basmati rice will be in great demand, so it’s time to ensure you have the right-sized larger packs of Tilda in-store. Last year, big bags were worth a massive £50 million – five percent up on 2018-19, with Ramadan accounting for 36 per cent of annual sales volume for larger packs. But smaller ones meeting everyday needs are also vital to stock for the right range to guarantee maximum sales. Basmati in 2kg and less is worth £15.5 million– but bigger is certainly getting better in Convenience. (Tilda’s Head of Marketing, Anna Beheshti, told us that big bags were growing an amazing 90-plus per cent in value across total Convenience last year.)
“Tilda would recommend stocking a range of formats,” Beheshti said. “Tilda Pure Basmati is available in the following pack sizes: 500g, 1kg, 2kg, 5kg, 10kg and 20kg.” For Ramadan, “shoppers usually trade-up to larger pack formats like the 5kg, 10kg and 20kg,” she advises.
Biryani dishes are also particularly popular during Ramadan with consumers cooking large pots of different biryanis and pulavs. Starting with the right rice is massively important to getting these popular recipes right.
For those meals, Tilda Grand Extra Long Basmati rice’s long and fine grains look incredible on the plate and stand out regardless of the ingredients it’s combined with. Grown high up in the misty valleys of the Himalayas, it is available in 5kg, 10kg and 20kg packs.
Tilda Golden Sella Basmati is a par-boiled rice that has the quality some Muslim consumers prefer for the rice not to stick. It is a versatile Basmati rice that offers the unique taste of Basmati along with rice grains that are golden, fluffy and separate, and is available in 5kg and 10kg packs
Sweets such as Firni or Rice Kheer with rosewater and cardamom are dishes that tend to be cooked in abundance during Ramadan when Muslim consumers break their fast,” she says. “Tilda Superior Broken Basmati is ideally suited for cooking Kheer as it brings rich tastes and aromas to the dish,” and can be bought in both 10kg and 20kg bags.
And don’t forget the breads! Dina Foods supplies authentic wholemeal, white and seeded flatbreads, pitta breads and its versatile Paninette flatbread, which can be used as a wrap, or served alongside a traditional mezze as a tear and share bread – and now even as soft-dough, two-layered pizza bases, sold in packs of four. These can be filled, used as wraps or topped like a pizza, and are perfect to share with family over Ramadan
Dina Foods have recently launched their Tasty Goodness range of pitta breads with three variants: seeded, sourdough, and plain mini flatbreads. All three are made using 50/50 wholemeal and white flour.
Quenching Ramadan thirst
Barr Soft Drinks make the fruit juices of the Rubicon brand, the exotic flavours of which have proven incredibly popular with Ramadan consumers over the years.
“Barr has a range of Rubicon products that cater for all shoppers needs,” explains Adrian Troy, Marketing Director.He says that retailers should focus on the Rubicon Still range early in Ramadan when consumers are fasting and then move towards Sparkling closer to Eid celebrations to maximise incremental sales. Rubicon Deluxe also plays an important role during Ramadan as an indulgent high sugar drink – these are celebration products and can be merchandised as such to increase excitement and anticipation.
Total Ramadan sales were still up +11.5 per cent last year, with the soft drinks category showing +16 per cent growthon the previous year, according to Kantar. “Larger Rubicon pack formats are seeing growth of +45 per cent,” reveals Troy – a figure that reflects the general move under the lockdown to larger formats moving through the convenience channel.
He adds that World Food soft drink shoppers were also spending more per trip last year, buying an additional 2.2 litres and contributing to +9 per cent volume growth. The taste for the tropical and sub-tropical Rubicon fruit flavours – mango, pomegranate, passion fruit, guava, lychee – are the perfect “getaway” when we are all bound by lockdown and the tail-end of a British winter. Add a day-long fast to that and the sweet tastes are more than welcome, as sales reflect.
Snack attack!
The crisps and snacks category has fared well under the lockdown with the heightening of the Big Night In occasion, and provocative, interesting flavours have benefited especially.
The UK palate is changing, and this is nowhere clearer than in the rush to ever more spicy and chili-packed crisps and snacks. The hotter the better, seems to be the watchword, and the outdated British aversion to strong tastes (can anyone remember when only “Continentals” would consider eating garlic?).
Jon Roberts is Brand Manager at Cofresh Snacks, who are the specialists in developing Asian flavours including traditional Indian Mixes (Bombay Mix, Balti Mix, Khatta Meetha etc) potato-based ‘Grills’ range in six flavours, Chilli & Lemon, Jalapeno and Peri Peri. He says that The booming consumer demand for bolder, spicier food is a key driver in the popularity of world snacks, which should be prominent on the shelves during the Ramadan period.
“Consumers are becoming ever more discerning and are actively seeking out great-tasting authentic snacks in preference to mediocre alternatives. Snacks are up +29 per cent with Sweet & Savoury Mixes up 45 per cent (Kantar 4 w/e 24.01.2021) – statistics which reflect the trend we’ve seen throughout Covid where people have wanted to give themselves a special treat or just to gain some energy to get through the long days of working from home.”
Ramadan therefore is not only a great time to maximise sales, as consumers will be looking for tasty and traditional snacks to enjoy when they gather to celebrate Iftar each evening, but it is also a great opportunity to highlight your offering and increase your customers’ basket spend, says Roberts.
Ramadan is also an opportunity for the convenience snack aisle to come off best against the mults, making the most of local and impulse influences – not least with the indies’ PMP advantage. “We find in our Grills (crisps) range, PMPs are very important as they allow retailers to highlight what great value for money they are versus mainstream crisps which are also priced at £1 but are often in smaller packs,” Roberts confides.
To help retailers make the most of Ramadan, Cofresh is offering some of its most popular snacks – as well as some exciting new ‘limited edition’ collections – in share pack formats for extra convenience and value. “Must haves” for Ramadan also include three of Cofresh’s classic Mixes – Bombay Mix, Chilli & Lemon Bombay Mix and Hot & Spicy Bombay Mix in 325g packs – as well as the best-selling Chilli & Lemon and Jalapeno Grills, and Hot Chilli Hoops, in 80g sharing bags.
Additional share packs perfect for Ramadan include:
New Masala Chips and Chilli Chips (120g)
New ‘Party Mix’ packs of assorted Grills, Spirals and Hoops in three delicious flavours – Cheese & Jalapeno, Sweet Chilli and Sour Cream & Chive (120g)
Chilli& Lime and Hot & Spicy Corn Crackers (120g)
Mango Chutney and Chilli& Lemon Poppadums (100g)
Merchandising Ramadan
Ramadan 2021 (or 1442 if you go by the Islamic calendar) is sure to be a interesting one. How far gatherings will be allowed remains to be finally determined, although the trend finally looks as if it’s in a more open direction, which is great news for Ramadan sales.
Also, the month should be merchandised enthusiastically as a run-up preparation for the great opening up of Eid, which truly will coincide with national life starting to loosen and return to something like normal. Make the most of the excitement and longing for better times with delicious and atmospheric products appealingly displayed to tap into this national thirst for easier, sweeter and more social times.
“Creating in-store theatre early on is important to drive soft drinks sales during occasions such as Ramadan, as well as making the most of POS on the fixture,” says Barr’s Adrian Troy. “Retailers should signpost the category and event to entice shoppers in. Increasing online presence, where possible, will also help to maximise communications with shoppers throughout any lockdown restrictions that might be in place.”
Bestway’s Burchell says,“We advise that retailers create a specific Ramadan area in the store, where all related products can be found, making the shopping experience as quick and convenient as possible. Utilising a shelving space adjacent to a chiller is ideal, as that way all ambient and chilled products can be housed near to each other.”
Co-fresh’s Roberts emphasises the logistics of lockdown shopping to assist in Ramadan sales. “In these trying times,” he says, “make sure you offer a wide range of snacks and products so that people can shop ‘grab and go’ with exactly what they need in one place. No one wants to be out shopping too long at the moment!Lockdowns and the pandemic have proven to be a boon to the sector as people have preferred to shop closer to home and avoid busy shops where possible.”
This encapsulates the Ramadan opportunity for independents, whose connection with Ramadan observers is in any case firm to begin with on a community level:“During Ramadan, there is a great opportunity for independents to set out attractive merchandising displays and showcasing new or special offer items,” Dina Food’s SuheilHaddad enjoins. “Independents can operate with speed and offer greater variety than the multiples, providing a welcome platform for innovative suppliers over Ramadan and all year round,” he concludes.
The UK retail sector is bracing for a challenging but opportunity-filled 2025, according to Jacqui Baker, head of retail at RSM UK. While the industry grapples with rising costs and heightened crime, advancements in artificial intelligence and a revival of the high street offer potential pathways to growth, she said.
The latest Budget delivered a tough blow to the retail sector, exacerbating existing financial pressures. Retailers, who already shoulder a significant portion of business rates and rely heavily on a large workforce, face increased costs from rising employers’ National Insurance Contributions.
“Higher costs will also eat into available funds for future pay rises, benefits or pension contributions – hitting retailers’ cashflow in the short term and employees’ remuneration in the longer term,” Baker said.
“Retailers must get creative to manage their margins and attract footfall and spend, plus think outside the box to incentivise employees if they’re to hold onto talented staff.”
On the brighter side, falling inflation and lower interest rates could ease operational costs and restore consumer confidence, potentially driving retail spending upward.
High street resurgence
Consumers’ shopping habits are evolving, with a hybrid approach blending online and in-store purchases. According to RSM UK’s Consumer Outlook, 46 per cent of consumers prefer in-store shopping for weekly purchases, compared to 29 per cent for online, but the preference shifts to 47 per cent for online shopping for monthly buys and to 29 per cent for in-store. The most important in-store aspect for consumers was ease of finding products (59%), versus convenience (37%) for online.
“Tactile shopping experiences remain an integral part of the purchase journey for shoppers, so retailers need to prioritise convenience and the opportunity for discovery to bring consumers back to the high street,” Baker noted.
The government’s initiative to auction empty shops is expected to make brick-and-mortar stores more accessible to smaller, independent retailers, further boosting high street revival, she added.
A security guard stands in the doorway of a store in the Oxford Street retail area on December 13, 2024 in London, EnglandPhoto by Leon Neal/Getty Images
Meanwhile, retail crime, exacerbated by cost-of-living pressures, remains a significant concern, with shoplifting incidents reaching record highs. From organised social media-driven thefts to fraudulent delivery claims, the methods are becoming increasingly sophisticated.
“Crime has a knock-on effect on both margins and staff morale, so while the government is cracking down on retail crime, retailers also have a part to play by investing in data to prevent and detect theft,” Baker said.
“Data is extremely powerful in minimising losses and improving the overall operational efficiency of the business.”
AI as a game-changer
Artificial intelligence is emerging as a transformative force for the retail sector. From personalised product recommendations and inventory optimisation to immersive augmented reality experiences, AI is reshaping the shopping landscape.
“AI will undoubtedly become even more sophisticated over time, creating immersive and interactive experiences that bridge the gap between online and in-store. Emerging trends include hyper-personalisation throughout the entire shopping journey, autonomous stores and checkouts, and enhanced augmented reality experiences to “try” products before buying,” she said, adding that AI will be a “transformative investment” that determines the long-term viability of retail businesses.
The Amazon Fresh store in Ealing, LondonPhoto: Amazon
As financial pressures ease, sustainability is climbing up the consumer agenda. RSM’s Consumer Outlook found 46 per cent would pay more for products that are sustainably sourced, up from 28 per cent last year; while 44 per cent would pay more for products with environmentally friendly packaging, compared to 36 per cent last year.
“However, ESG concerns vary depending on age and income, holding greater importance among high earners and millennials. With financial pressures expected to continue easing next year, we anticipate a renewal of sustainability and environmentally conscious spending habits,” Baker noted.
“Retailers ought to tap into this by understanding the preferences of different demographics and most importantly, their target market.”
Southend-on-Sea City Council officials have secured food condemnation orders from Chelmsford Magistrates Court, resulting in the seizure and destruction of 1,100 unauthorised soft drinks.
The condemned drinks, including Mountain Dew, 7-UP, Mirinda, and G Fuel energy drinks, were found during routine inspections of food businesses across Southend by the council’s environmental health officers.
Council said these products contained either banned additives like Calcium Disodium EDTA or unauthorised novel ingredients such as Potassium Beta-hydroxybutyrate.
Calcium Disodium EDTA has been linked to potential reproductive and developmental effects and may contribute to colon cancer, according to some studies. Potassium Beta-hydroxybutyrate has not undergone safety assessments, making its inclusion in food products unlawful.
Independent analysis certified that the drinks failed to meet UK food safety standards. Magistrates ordered their destruction and ruled that the council's costs, expected to total close to £2,000, be recovered from the businesses involved.
“These products, clearly marketed towards children, contain banned or unauthorised ingredients. Southend-on-Sea City Council will always take action to protect the public, using enforcement powers to ensure unsafe products are removed from sale,” Cllr Kevin Robinson, cabinet member for regeneration, major projects, and regulatory services, said.
“As Christmas approaches, we hope this sends a strong message to businesses importing or selling such products: they risk significant costs and possible prosecution.”
The council urged residents to check labels when purchasing imported sweets and drinks, ensuring they include English-language details and a UK importer's address.
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A customer browses clothes inside Charity Super.Mkt at Brent Cross Shopping centre in north London on, December 17, 2024
Bursting with customers one afternoon the week before Christmas, a second-hand charity shop in London's Marylebone High Street looked even busier than the upscale retailers surrounding it.
One man grabbed two puzzle sets and a giant plush toy as a present for friends, another picked out a notebook for his wife.
“Since the end of September, we've seen a huge uplift in people coming to our shops and shopping pre-loved,” said Ollie Mead, who oversees the shop displays - currently glittering with Christmas decorations - for Oxfam charity stores around London.
At the chain of second-hand stores run by the British charity, shoppers can find used, or "pre-loved", toys, books, bric-a-brac and clothes for a fraction of the price of new items.
Popular for personal shopping, charity stores and online second-hand retailers are seeing an unlikely surge in interest for Christmas gifts, a time of year often criticised for promoting consumerism and generating waste.
A report last month by second-hand retail platform Vinted and consultants RetailEconomics found UK customers were set to spend £2 billion on second-hand Christmas gifts this year, around 10 per cent of the £20 billion Christmas gift market.
A woman browses some of the Christmas gift ideas in a store on December 13, 2024 in London, England. Photo by Leon Neal/Getty Images
In an Oxfam survey last year, 33 per cent were going to buy second-hand gifts for Christmas, up from 25 percent in 2021.
“This shift is evident on Vinted,” Adam Jay, Vinted's marketplace CEO, told AFP.
“We've observed an increase in UK members searching for 'gift' between October and December compared to the same period last year.”
According to Mead, who has gifted second-hand items for the last three Christmas seasons, sustainability concerns and cost-of-living pressures are “huge factors”.
Skimming the racks at the central London store, doctor Ed Burdett found a keychain and notebook for his wife.
“We're saving up at the moment, and she likes to give things another life. So it'll be the perfect thing for her,” Burdett, 50, told AFP.
“It's nice to spend less, and to know that it goes to a good place rather than to a high street shop.”
'Quirky, weird
Wayne Hemingway, designer and co-founder of Charity Super.Mkt, a brand which aims to put charity shops in empty shopping centres and high street spaces, has himself given second-hand Christmas gifts for “many, many years”.
“When I first started doing it, it was classed as quirky and weird,” he said, adding it was now going more “mainstream”.
Similarly, when he first started selling second-hand clothes over 40 years ago, “at Christmas your sales always nosedive(d) because everybody wanted new”.
Now, however, “we are seeing an increase at Christmas sales just like a new shop would”, Hemingway told AFP.
“Last weekend sales were crazy, the shop was mobbed,” he said, adding all his stores had seen a 20-percent higher than expected rise in sales in the weeks before Christmas.
“Things are changing for the better... It's gone from second-hand not being what you do at Christmas, to part of what you do.”
Young people are driving the trend by making more conscious fashion choices, and with a commitment to a “circular economy” and to “the idea of giving back (in) a society that is being more generous and fair,” he said.
At the store till, 56-year-old Jennifer Odibo was unconvinced.
Buying herself a striking orange jacket, she said she “loves vintage”.
But for most people, she confessed she would not get a used gift. “Christmas is special, it needs to be something they would cherish, something new,” said Odibo.
“For Christmas, I'll go and buy something nice, either at Selfridges or Fenwick,” she added, listing two iconic British department stores.
Hemingway conceded some shoppers “feel that people expect something new” at Christmas.
“We're on a journey. The world is on a journey, but it's got a long way to go,” he added.
According to Tetyana Solovey, a sociology researcher at the University of Manchester, “for some people, it could be a bit weird to celebrate it (Christmas) with reusing.”
“But it could be a shift in consciousness if we might be able to celebrate the new year by giving a second life to something,” Solovey told AFP.
“That could be a very sustainable approach to Christmas, which I think is quite wonderful.”
Lancashire Mind’s 11th Mental Elf fun run was its biggest and best yet – a sell-out event with more than 400 people running and walking in aid of the mental charity, plus dozens more volunteering to make the day a huge success.
The winter sun shone on Worden Park in Leyland as families gathered for either a 5K course, a 2K run, or a Challenge Yours’Elf distance which saw many people running 10K with the usual running gear replaced with jazzy elf leggings, tinsel and Christmas hats.
And now the pennies have been counted, Lancashire Mind has announced that the event raised a fantastic £17,000.
This amount of money allows Lancashire Mind to deliver, for example, its 10-week Bounce Forward resilience programme in eight schools, reaching more than 240 children with skills and strategies that they can carry with them throughout their lives, making them more likely to ‘bounce forward’ through tough times.
The event was headline sponsored by SPAR for a third year through its association with James Hall & Co. Ltd, SPAR UK’s primary retailer, wholesaler, and distributor for the North of England.
“On behalf of the entire team at Lancashire Mind, we want to extend a heartfelt thank you to the 400+ incredible participants who joined us for Mental Elf 2024!” said Organiser Nicola Tomkins, Community and Events Fundraiser at Lancashire Mind.
“Your support, energy and commitment to raising awareness for mental health makes all the difference. Together, we've taken another important step towards breaking the stigma around mental health and promoting wellbeing for all in our community. We couldn't have done it without you!”
Worden Hall became the hub of the event where people could enjoy music from the Worldwise Samba Drummers and BBC stars Jasmine and Gabriella T, plus lots of family friendly activities and a chance to meet Father Christmas. Pets also got in on the act in the best dressed dog competition.
Lancashire Mind CEO David Dunwell said: “It was heart-warming day, full of community spirit and festive cheer, but with a serious aim to raise funds for mental health.
“We are so grateful to everyone who bought a ticket and fundraised or donated to help us smash our target. The money raised goes directly to supporting Lancashire Mind’s life-changing mental health services. These funds help provide wellbeing coaching, support groups, and educational programmes to individuals and families in need of mental health support in our community.”
The concept of Mental Elf was created by Lancashire Mind and news of the event has spread right across the country in recent years, with around 40 other local Mind charities hosting a similar event in 2024.
Lancashire schools were also encouraged to host their own Mental Elf-themed event this year, whether that was a run, bake sale or dress up day, and raised more than £1,000 in total.
Philippa Harrington, Marketing Manager at James Hall & Co. Ltd, said: “There was a lovely festive feel in the air at Mental Elf and we were delighted to see even more individuals, families, and canine companions taking part in its new home of Worden Park.
“We are also very pleased to see the uptake that Mental Elf has had in schools, and congratulations go to the Lancashire Mind team for taking it to new participants and for raising a fantastic amount of money for an important cause.”
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A woman walks past a window display promoting an ongoing sale, on December 13, 2024 in London, England.
UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.
Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.
The updates follow news this week of higher inflation in Britain - an outcome that caused the Bank of England on Thursday to leave interest rates unchanged.
Retail sales by volume grew 0.2 per cent in November after a drop of 0.7 per cent in October, the Office for National Statistics said Friday.
That was less than analysts' consensus for a 0.5-percent gain.
"It is critical delayed spending materialises this Christmas to mitigate the poor start to retail's all-important festive season," noted Nicholas Found, senior consultant at Retail Economics.
"However, cautiousness lingers, slowing momentum in the economy. Households continue to adjust to higher prices (and) elevated interest rates."
He added that consumers were focused on buying "carefully timed promotions and essentials, while deferring bigger purchases".
The ONS reported that supermarkets benefited from higher food sales.
"Clothing stores sales dipped sharply once again, as retailers reported tough trading conditions," said Hannah Finselbach, senior statistician at the ONS.
Retail sales rose 0.2% in November 2024, following a fall of 0.7% in October 2024.
Growth in supermarkets and other non-food stores was partly offset by a fall in clothing retailers.
The Labour government's net borrowing meanwhile dropped to £11.2 billion last month, the lowest November figure in three years on higher tax receipts and lower debt-interest, the ONS added.
The figure had been £18.2 billion in October.
"Borrowing remains subject to upside risks... due to sticky interest rates, driven by markets repricing for fewer cuts in 2025," forecast Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics.
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, commented that the later than usual Black Friday weekend meant November’s retail sales figures saw only a slight uptick as cost-conscious consumers held off to bag a bargain.
“Despite many retailers launching Black Friday offers early, November trade got off to a slow start which dragged on for most of the month. This was driven by clothing which fell to its lowest level since January 2022. The only saving grace was half-term and Halloween spending helped to slightly offset disappointing sales throughout November,” Baker said.
“As consumer confidence continues to build and shoppers return to the high street, this should translate into more retail spending next year. However, there are big challenges coming down the track for the sector, so retailers will be banking on a consumer-led recovery to come to fruition so they can combat a surge in costs.”
Thomas Pugh, economist at RSM UK, added: “The tick up in retail sales volumes in November suggests that the stagnation which has gripped the UK economy since the summer continued into the final months of the year.
“While the recent strong pay growth numbers may make the Bank of England uncomfortable, it means that real incomes are growing at just under 3 per cent, which suggests consumer spending should gradually rise next year. However, consumers remain extremely cautious. The very sharp drop in clothing sales in particular could suggest that consumers are cutting back on non-essential purchases.
“We still expect a rise in consumer spending next year, due to strong wage growth and a gradual decline in the saving rate, to help drive an acceleration in GDP growth. But the risks are clearly building that cautious consumers choose to save rather than spend increases in income, raising the risk of weaker growth continuing through the first half of next year.”