It seems consumers were cautious about spending as pre-Budget fears hit Black Friday sales last month, according to figures from the British Retail Consortium (BRC) and KPMG. And the fashion industry suffered as a mild start to November deterred people from investing in Winterwear.
Total UK retail revenues were up 1.4 per cent year-on-year over the four weeks from 2 to 29 November, compared to a 3.3 per cent drop the same time last year. The figure marked the weakest growth in six months, despite increased inflation, the latest BRC-KPMG retail sales monitor showed.
Non-food revenues climbed marginally by 0.1 per cent year-on-year, against 7.9 per cent last year, while online non-food sales increased by 0.5 per cent, compared to a 10.3 per cent drop during November 2024.
Helen Dickinson, CEO of the BRC, said pre-Budget jitters among shoppers meant the month of Black Friday “did not deliver as strongly as retailers had hoped”.
“Not unexpectedly, online dominated, with the proportion of non-food bought online, reaching its highest level since 2022. The fashion industry lagged behind, especially with the mild first half of November dampening demand for winterwear.”
Ms Dickinson added: “It has been a difficult year as retailers grappled with ever-rising cost pressures. Looking ahead, it is time public policy started prioritising measures to revive consumer confidence and keep costs of doing business down so retailers can focus on growth strategies to maximise their contribution to economic recovery.”
Some analysts agreed and attributed the surprise fall in sales to consumer concerns over the Autumn Budget…
“The uncertainty surrounding what the Chancellor’s Budget would mean for individuals only further dampened consumer confidence and spending intentions,” said Rajeev Shaunak, Head of Consumer at the accountancy and advisory firm MHA.
“The Christmas trading period will be critical, and early sales indicators are expected to confirm that consumer demand remains sluggish, creating a perfect storm for retailers.”
