UK Nov Retail Sales Dip, But Beat Expectations

UK NOV RETAIL SALES -3.8% M/M; +2.4% Y/Y, ABOVE BBG -4.1% M/M

UK NOV RETAIL SALES EX-FUEL -2.6% M/M; +5.6% Y/Y

UK OCT TOTAL SALES REVISED AT +1.3% M/M

UK NOV RETAIL SALES DEFLATOR -1.8% Y/Y; EX-FUEL -1.2% Y/Y

UK retail sales declined by 3.8% in Nov as the second lockdown kicked in, slightly better than markets expected and in line with MNI's latest Reality Check. Nevertheless, sales remain above their pre-pandemic levels with monthly sales 2.6% higher than in Feb. Annual sales grew by 2.4% in Nov after increasing by 5.8% in the previous month. Clothing and fuel sales took the largest hit during the winter lockdown with clothing and footwear sales plunging by 19.0% m/m, while fuel sales were down 16.6% m/m. Household goods and food stores were the only categories to see a monthly increase as firms noted that consumers brought forward their Christmas shopping, particularly on festive home products and DIY. Household good stores saw sales rise by 1.6% and food sales ticked up 3.1% in Nov. Internet sales accelerated to 6.3% m/m, up from 4.8% seen in Oct, shifting the proportion of all retailing up to 31.4% in Nov, its highest since June. Compared to Nov 2019 online sales were 74.7% higher in value terms.