Title: UK Retail Sales Under Pressure Despite Black Friday Promotions Summary: Despite the anticipated surge in retail sales during Black Friday, UK retailers are experiencing disappointing results due to challenging economic conditions impacting consumer spending. Key Highlights: Black Friday Performance: The expected increase in sales during the Black Friday shopping event has not materialized as anticipated. Economic Impact: Current economic factors, including inflation and rising living...
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The Black Friday shopping event, traditionally a major opportunity for retailers, has yielded disappointing results this year, primarily due to economic uncertainties. Recent data from the British Retail Consortium (BRC) and KPMG indicates that total retail sales grew by only 1.4% in November compared to the same month last year, marking the slowest growth rate in six months.
This overall growth is overshadowed by the ongoing challenges faced by consumers grappling with rising living costs. While food sales increased by 3%, this growth was below last year’s average of 3.6%. Additionally, sales of non-food items saw minimal progress, rising by just 0.1%, a sharp decline from the 1.6% average growth witnessed over the past year.
Challenges faced by retailers
As the holiday season approaches, many households began preparing for celebrations, thereby increasing demand for home goods and furnishings. However, fashion retail struggled significantly due to unseasonably warm weather early in November, which dampened the demand for winter clothing.
Helen Dickinson, CEO of BRC, underscored the impact of pre-Budget jitters, which contributed to the disappointing sales figures during this critical shopping period.
Consumer confidence and spending habits
Linda Ellett, who leads the consumer, retail, and leisure market sector at KPMG, acknowledged that while sales showed some growth, it did not meet retailers’ expectations. The promotion-driven environment of Black Friday failed to generate the anticipated momentum. Although categories such as electronics and household appliances performed better than during the previous year’s Black Friday, the overall growth in non-food sales remained negligible. Rising household costs and economic uncertainty continue to significantly impact discretionary spending.
A report from Barclays revealed that consumer card spending declined by 1.1% year-over-year in November, marking the largest drop since February. Despite the overall dip in retail spending, Black Friday emerged as the busiest day for transactions this year, with a 62.5% increase compared to an average day in 2025. Travel agencies benefitted notably from the shopping event, reporting a 10.7% increase in sales, while subscriptions to streaming services rose by 3.5%, partly due to popular shows like *Stranger Things*.
Looking ahead: Economic implications
Consumer confidence, as measured, stood at 22% in November, consistent with October’s reading. A slight improvement in households’ financial outlook was noted, rising from 63% to 64%, though this remains below the 70% average reported in 2025. Jack Meaning, Barclays’ chief UK economist, emphasized that while Black Friday provided a minor boost, overall consumer spending trends suggest a persistent state of caution as the year concludes.
The economic environment in the UK has been characterized by slower growth and rising costs, raising a crucial question: Can easing interest rates and declining inflation stimulate consumer spending, or will continued tightening of fiscal policies prolong the current economic malaise into 2026?
The results of this year’s Black Friday clearly illustrate the challenges facing retailers as they navigate a complex consumer landscape defined by economic uncertainty and evolving spending habits. As the holiday season approaches, there is cautious optimism that clarity from the upcoming Budget may enhance consumer confidence and enable retailers to refocus on growth strategies.
