Deloitte comments on today’s ONS retail sales figures
19 November 2015
Commenting on today’s ONS retail sales figures, Ian Geddes, head of retail at Deloitte, said:
“Despite the expected growth in retail sales volumes year on year (3.8%), October’s sluggish retail sales growth in value (+0.5% year-on-year) could be down to consumers waiting to bag a bargain over the next few weeks. Similarly, the slowdown in online sales values from the previous month (-0.8%), seems to support this view. For retailers and consumers alike, Black Friday is the launch pad for the festive shopping period.
“Although the prolonged discounting period can be a challenge, retailers may feel obliged to compete in order to maintain market share and retain customer loyalty. For this reason, we are likely to see another record-breaking weekend, despite some larger retailers having a lower level of participation. The confluence of various factors, including deflation, increased consumer confidence and the media hype around Black Friday, will have a big influence on November’s retail figures.
“However, given changing shopping trends and a multitude of other events in the retail calendar, Black Friday sales volumes could peak this year. Certain events, such as Cyber Monday, could overtake Black Friday in the near future in terms of spending, with its emphasis of online more in tune with today’s shopper.
“In the long term, we expect retailers to increasingly adopt more personal modes of commerce. Highly targeted offers will be sent to consumers offering exactly what they want, and when they want it. This will maximise margins for the retailer while still providing shoppers with a sense they have grabbed a bargain.”
Notes to editors
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