Black Friday footfall on UK high streets fell 2% on Friday and 7.2% compared with the same period last year, according to data from MRI Software. The decline was attributed to weak consumer spending, with the cost-of-living crisis weighing on activity. Only locations near central London offices saw a slight uptick in visitors.
Online sales also showed mixed results, with a heavy drop on Thursday but a rise on Tuesday, according to the online retail association IMRG. The data comes as KPMG warned that soft consumer spending is likely to hold back economic growth in 2026, with unemployment expected to rise to 5.2%.
KPMG chief economist Yael Selfin predicted GDP growth of just 1% in 2026 and 1.4% in 2027, citing a cooling labour market and weak household spending. She noted positive pockets in green energy but said the medium-term outlook could improve only if planning reforms unlock housing delivery and reduce investor uncertainty.
The gloomy picture was reinforced by two other reports. The Confederation of British Industry’s services sector survey showed the fastest decline in business optimism for three years, while the Institute of Directors reported its economic confidence index near a record low of -73 before the budget, improving only slightly to -72 afterwards.
Hospitality businesses also expressed concern over business rates changes, with many pubs facing significant increases in rateable value. Despite government promises of transitional relief, industry leaders warned that the measures may not be enough to prevent an “extinction event” for some pubs.
