UK retail sales growth slips as Black Friday underwhelms

(Sharecast News) - UK retail sales growth slowed to its lowest in six months in November as cautiousness ahead of the Autumn Budget resulted in an underwhelming Black Friday promotional period for shops. According to the British Retail Consortium and KPMG on Tuesday, total retail sales increased at a year-on-year rate of 1.4% last month, down from 1.6% in October and 2.3% in September.

The slowdown came despite inflation remaining elevated, reflecting "pre-Budget jitters among shoppers", according to Helen Dickinson, chief executive of the BRC.

Food sales were up 3.0% over last year, slowing slightly from the 3.% year-on-year growth seen in October.

Meanwhile, non-food sales rose just 0.1%, in line with the previous month, with 0.5% growth online offsetting a 0.3% decline in-store.

"Not unexpectedly, online dominated, with the proportion of non-food bought online reaching its highest level since 2022. Many consumers took advantage of promotions, with homeware and upholstery selling well ahead of festive hosting. Fashion lagged, especially with the mild first half of November dampening demand for winterwear," Dickinson said.

Linda Ellett, UK head of consumer within the retail and leisure division of KPMG, said macro concerns and rising household costs are continuing to hold back discretionary spend among consumers.

"Retailers will be hoping that Budget clarity has now provided more certainty for consumers about their ability to spend in the months ahead. And as the Christmas decorations go up, hopefully retail sales growth does too, ending 2025 with some festive cheer for the sector," Ellett said.