Black Friday fizzles as consumer confidence dives further

Like-for-like discretionary retail sales rose +3.4% in November against a weak prior-year base, with online sales up +9.9% and in-store sales up only +1.3%. Growth was largely online-driven, but sales increases trailed inflation, indicating lower real volumes. Black Friday produced minimal additional spending, with the Black Friday week delivering only +0.38% growth. Retailers relied on heavy discounting during November, putting pressure on margins. Consumer confidence fell sharply and broader economic conditions limited discretionary spending. Persistent food inflation constrained household budgets and intensified competition for non-essential purchases.

"Total like-for-like retail sales in discretionary categories (fashion, homewares and lifestyle) recorded retail sales growth of +3.4% in November, compared to a very weak base of -5.8% in November 2024. This is according to the latest High Street Sales Tracker from accountancy and business advisory firm BDO. In the month which included Black Friday, in-store sales grew by just +1.3%, compared to a very poor base of -5.5% in November 2024."

"Black Friday failed to drive any meaningful sales growth for retailers or get shoppers spending in stores in November. In fact, the week of Black Friday saw the lowest sales growth during the month, at just +0.38% above the same week last year. Sales on the high street registered minimal growth, and while online sales performed better, retailers discounted heavily throughout November to generate these sales, which will have put further pressure on their margins."

"Sales growth was primarily driven by online sales, which increased by +9.9% compared to a negative -7.8% for the same month last year, reflecting the continued struggles of bricks and mortar stores to attract consumer spending, but also online spending barely getting back to 2023. Consumer confidence has also fallen sharply and wider economic conditions are unlikely to have encouraged many shoppers to go out and spend in discretionary categories."

Read at London Business News | Londonlovesbusiness.com