A rush to buy carpets, furniture and luxury goods before Christmas spurred retail sales growth to its highest level in 26 years, according to a survey by the CBI.
The business lobby group said shoppers thronged Britain’s high streets in the two week to 11 December to take advantage of huge price discounts.
Black Friday on 28 November played a major role in driving the surge in sales, but the major supermarkets also enjoyed a boost after grocery sales registered the strongest year-on-year growth in the sector.
About 70% of respondents reported sales volumes up on a year ago, while 9% said they were down, the CBI said, giving a rounded balance of +61%, which was well above the +38% that had been expected and the highest balance since January 1988.
Sales volumes for the time of year were above average with 22% of shops describing them as ‘good’ against 5% saying ‘poor’, giving a rounded balance of +16%.
Barry Williams, Asda chief merchandising officer for food and CBI retail chairman, said Black Friday price-cuts were embraced more widely than ever by UK retailers and shoppers reacted by buying more goods.
But he struck a note of caution when he said the remainder of the Christmas period could be weaker than previous years.
“Shoppers may have caught the Christmas bug early and brought some of their spending forward. This has been a tough year for many retailers and parts of the sector are still struggling.
“Increasing disposable income from real wages growth, and falling fuel prices are giving retailers reasons for optimism but we’ll need to see in the new year whether the upbeat mood takes hold.”
The survey comes only a day after official data for November found that sales grew at a pace not seen for 10 years. The Office for National Statistics said Black Friday discounts and a dramatic fall in petrol prices over the last month provided shoppers with extra cash for other purchases.
The CBI said internet sales grew only moderately on a year ago, bringing a sense of calm after a bonanza of sales in November.
The survey also includes motor retailers, which remain in rude health after more than two years of double digit sales growth. Car manufacturing and sales account for much of the growth in manufacturing and consumer spending during the recovery, according to ONS figures.
