Black Friday blamed for worst monthly department store sales in 20 years

 
The boss of department store John Lewis, Andy Street, has advised fellow retailers to play down the one-off discounting day Black Friday
Russell Lynch23 January 2015

Department stores had their worst month for nearly 20 years in December, fuelling complaints by some retailers over the impact of the “Black Friday” price-cutting frenzy on sales.

Sales volumes at department stores sank 4.5% over the month — the worst decline since January 1996 when they fell by 4.8%, the Office for National Statistics said.

The fall more than offsets the 3.1% rise in sales seen by department stores in November as the imported US phenomenon drew in shoppers.

The figures come after John Lewis boss Andy Street urged fellow retailers to “play down” Black Friday next year.

But overall retail sales rose 0.4% over the month, confounding expectations for a fall after November’s Black Friday-inspired 1.6% rise and showing the impact of plunging inflation on consumer spending.

Sales over the quarter jumped at their fastest pace for more than 12 years.

“Black Friday did not merely cause consumers to bring forwards their Christmas purchase, but encouraged them to spend even more,” Capital Economics said.

But David Kern, chief economist at the British Chambers of Commerce, said: “While it is positive that the retail sector is performing well, the UK economy still relies too heavily on consumer spending, and the contribution of exports and investment remain too low.”

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