Budget uncertainty dampens November spending
Black Friday discounts failed to significantly boost consumer spending in November, as Budget uncertainty kept shoppers away from the high street.
Sales declined 0.1 per cent last month, following a 0.9 per cent fall in October, as households opted to hold off spending in the run up to Christmas and wait to see the outcome of the Budget.
While November did experience a 0.6 uptick compared to the prior year, sale volumes were still down by three per cent, compared to levels recorded pre-covid.
Retail sector volumes
Total sales volume fell last month, with online jewellers reporting reduced demand upon the price of precious metals stabilising after reaching record highs earlier in the year.
Supermarkets also saw sales tumble for the fourth consecutive month, with retailers reporting low footfall, however this was partly offset by a one per cent rise in non-food stores.
Analysts credited the fall to ongoing food inflation still having a “significant impact on consumers budgets and purchasing decisions.
Department stores credited the rise in sales volume to retailers taking advantage of longer Black Friday discounting, with footwear and leather goods also catching consumer’s eyes.
Automotive fuel also recovered from a subdued October, returning to just above September 2025 levels.
Oliver Vernon-Harcourt, head of retail at Deloitte, said: “A second consecutive month of decline in retail sales will be a big disappointment for retailers, particularly with Black Friday and early Christmas shopping captured in these figures.
“It could be that some consumers opted to delay spending decisions until after the Budget, but the rise in volumes across department stores… suggests that the start of the discounting period could have enticed consumers into purchases at the end of the month.”
Black Friday and online sales
Despite department stores benefiting from Black Friday discounts, the major shopping event had a slightly weaker effect than usual.
According to data from the Office of National Statistics, only three in ten adults planned to shop in the sales, while 19 per cent stated they intended to spend less this year.
Online sales recorded a small monthly rise of 0.7 per cent in November, with the proportion of sales made online jumping from 28.4 per cent to 28.6 per cent.
Compared to the same period last year, online sales volume have increased a staggering 8.3 per cent, highlighting the change consumer habits.
Nicholas Found, head of commercial content at Retail Economics, said: “November underlines just how fragile retail remains.
“While Black Friday was the month’s defining event, its impact was dampened by heightened uncertainty ahead of the Budget, with shoppers tactical and value-focused.
“The real test for retailers is in the run-up to Christmas. Returns volumes over the coming month will determine whether recent deals have lived up to expectations and, crucially, whether they convert into profitable growth.”