Black Friday boost fails to materialise for Britain’s high streets
UK retail sales failed to meet shops’ expectations this Black Friday as pre-budget jitters dampened spending.
Retail sales increased by 1.4 per cent year on year in November, against a decline of 3.3 per cent in November 2024 and below the 12-month average growth of 2.5 per cent, according to the British Retail Consortium (BRC).
Helen Dickinson, CEO of the BRC, said that Black Friday did not deliver “as retailers had hoped or the economy needed”.
“Sales growth was the weakest in six months, despite elevated inflation… not unexpectedly, online dominated.”
The proportion of goods bought online reached its highest level since 2022, hitting 44 per cent.
Dickinson said that it has been a “difficult year” as retailers grappled with “ever-rising cost pressures”, including a new minimum wage, higher national insurance contributions and a new packaging tax.
Business rates are also set to rise with inflation next year. A planned cut to rates for retail, leisure and hospitality firms is set to ease the pressure somewhat, but most venues will still see their bill rise.
“Looking ahead to 2026, 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,” Dickinson said.
Linda Ellett, UK head of consumer, retail & leisure at KPMG, said that post-Budget sales might provide some hope for shops.
“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.