Retail sales in Great Britain unexpectedly fell in November, as a quarter of shoppers delayed their Christmas purchases in anticipation of better deals, according to official figures. The Office for National Statistics (ONS) reported a 0.1% month-on-month drop in sales volumes, defying economist forecasts of 0.4% growth driven by Black Friday promotions.
The ONS noted that Black Friday discounts failed to boost sales as much as in previous years. Hannah Finselbach, a senior statistician at the ONS, said: “This year November’s Black Friday discounts did not boost sales as much as in some recent years. Meanwhile, our separate household survey showed that although some people said they were planning to do more shopping this Black Friday than last, almost twice as many said they were planning to do less.”
Budget uncertainty and the wettest weather of the year also dampened consumer confidence, leading to a second consecutive monthly decline in the crucial “golden quarter” for retailers. Jacqui Baker, head of retail at RSM UK, commented: “Speculation around potential tax hikes and the wettest weather seen this year dampened retail sales in November. The drop in sales compounded a bleak start to the all-important golden quarter.”
Non-store retailers, primarily online, saw a 2.9% drop in sales, while supermarket sales fell for the fourth consecutive month, down 0.5%. However, non-food stores rose 1% month-on-month, driven by department stores and footwear retailers. The ONS revised October’s sales slump from 1.1% to 0.9% and September’s growth from 0.8% to 0.7%.
Despite the November downturn, consumer confidence ticked up in December, suggesting a potential late surge in holiday shopping. The Financial Conduct Authority confirmed that the £100 limit on contactless payments will be lifted from March, giving banks the power to set their own limits.
