UK retail sales growth subdued as shoppers await Black Friday

(Sharecast News) - UK retail sales growth remained sluggish in October as consumers held back spending ahead of Black Friday and Christmas amid mounting pressure on household budgets, according to figures from the British Retail Consortium and KPMG. Total retail sales increased by 1.5% year on year over the four weeks to 31 October, slightly below the 1.6% growth recorded in the same period last year, but ahead of the three-month average of 1.2%.

Non-food sales were flat as shoppers delayed purchases of big-ticket items such as furniture and white goods in anticipation of November discounts. In-store non-food sales fell 1.1%, while online non-food sales rose 1.8%.

The proportion of non-food purchases made online increased to 38.6% from 38.2% a year earlier, helped by wet weather.

Food sales provided some support, rising 3.2% year on year. Spending was boosted by Halloween, the half-term holiday and some households stocking up on essentials following government advice on emergency preparedness, the BRC said.

"October was subdued for retailers, as shoppers delayed spending ahead of Black Friday and Christmas," said Helen Dickinson, chief executive of the BRC.

"Retailers are hoping pent-up demand translates into stronger spending through November and December, as they work hard to deliver great choice and value for households this Christmas."

Sarah Bradbury, chief executive of IGD, warned that shopper confidence remained fragile, with higher energy costs, inflation and interest rates creating a challenging outlook for 2027.

"Food and grocery promotions should help keep shoppers spending during the festive period, but we expect January to be a difficult month for many households," she said.