Weekly Retail & Leisure News - 16 November, 2015
UK retail sales decreased marginally by -0.2% on
a LFL basis in October, according to the BRC, with total sales up by 0.9%. The
drop in LFLs marks a change in fortunes after a sharp 2.6% rise in sales in
September, although those figures were distorted by the timing of the end of
summer bank holiday. The negative sales in October are likely to be driven
partially by the rise of Black Friday, as shoppers postpone purchases in
anticipation of the discounts available. The event, which has changed the way
the UK shops over the festive period, falls on November 27 this year and is
likely to give the sector a sales boost next week.
However, one national UK retailer, Asda, has
already announced that it has decided not to take part in Black Friday this
year, commenting that it would cut prices by a total of £26m over several weeks
in the run-up to Christmas. The grocer also announced this week that it was
launching a new
parcel delivery service in store, that will enable customers to collect or
return orders made at third party online retailers. Misguided has been named as
the first retailer to join the service.
Meanwhile, trading continues to be mixed for UK
grocers, with Sainsbury’s announcing that total group sales were down -2.0% and
LFL sales declined -1.6% in the 28 weeks to September 26. Although an
improvement on previous results with online grocery sales increasing 7% in the
same period, this statement highlights the continued pressures that the Big
Four supermarkets are facing in a deflationary grocery market, as discounters
such as Lidl continue to announce expansion plans.
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Director, Head of Retail Research (UK & EMEA)
+44 (0)20 3147 1155
Director, Head of UK Retail & Leisure
+44 (0)20 7318 7838
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