Official figures have revealed an unexpected contraction in UK retail sales during November, as the much-hyped Black Friday discounting period failed to spur significant consumer spending in the crucial run-up to Christmas.
Official Data Reveals Surprise Decline
The Office for National Statistics (ONS) estimated that the total volume of retail sales fell by 0.1% in November. This decline came as a surprise to market analysts, most of whom had forecast a 0.4% increase for the month. The disappointing figures follow a steeper 0.9% drop recorded in October.
Senior ONS statistician Hannah Finselbach noted that the seasonal boost from Black Friday promotions was weaker this year. "This year November’s Black Friday discounts did not boost sales as much as in some recent years," she stated. A separate household survey conducted by the ONS found that while some people planned to shop more this Black Friday, almost twice as many intended to spend less.
Sector Performance: A Mixed Picture
The data painted a varied picture across different retail sectors. Supermarket sales continued to struggle, falling by 0.5% in November – marking the fourth consecutive month of decline. Retailers reported fewer shoppers visiting physical stores.
In a significant downturn, non-store retailing – which is predominantly online shopping but also includes market stalls – saw sales plummet by 2.9%. This sector was particularly hit by reduced demand at online jewellers following a previous surge in interest for gold.
However, there were pockets of growth. Department stores enjoyed a 2.3% jump in sales volumes, which some attributed to extended Black Friday discount periods. Clothing and footwear shops also saw a rise of 1.7%, while sales of household goods increased by 1.8%.
Industry Reaction and the Christmas Challenge
Industry experts expressed disappointment at the figures. Oliver Vernon-Harcourt, head of retail at Deloitte, described a second month of falling sales as a "big disappointment for retailers," especially given the timing encompassing Black Friday and early Christmas shopping.
He suggested that some consumers may have delayed spending decisions, possibly waiting for clarity after the recent Budget. However, he pointed to the broader context: "The bigger picture of retail in 2025 showed a prolonged pressure from weak consumer confidence and challenging economic conditions."
Nicholas Found, head of commercial content at Retail Economics, highlighted that the cost of living remains a "dominant concern for households," creating a fiercely competitive environment where one retailer's gain often comes at another's expense.
All eyes are now on the final weeks of December. Erin Brookes, European retail and consumer lead for Alvarez & Marsal, warned of an intense battle for discretionary spending. "As the golden quarter enters its final stretch, retailers will be pulling every lever to convert last-minute demand," she said, predicting fierce competition for every pound as the festive trading period reaches its climax.
