Black Friday flops, with November retail sales falling 0.3%

Black Friday appears to have been a bust, with retail sales falling 0.3% in November.

In November, volumes decreased by 0.4%, in sharp contrast to the 0.3% increase that analysts had predicted.

Despite the now-traditional pricing binge, online businesses took a 2.8% hit, however this was somewhat offset by a rise in food purchasing as Brits stocked up early for Christmas.

The overall decline occurred after a 0.9% rebound in October, and data remain 0.7% below pre-pandemic levels.

In spite of a decline in sales volume, the value of November’s transactions increased by 0.5% as a result of soaring prices.

Retailers will be “holding their breath” in the key weeks leading up to Christmas, according to business organizations.

Despite a decline in sales volume, November’s sales value was 0.5% higher than the previous month due to soaring prices.

Director of economic statistics at the ONS, Darren Morgan, stated, ‘Retail sales decreased overall in November, driven by a considerable decline in online merchants, with Black Friday promotions failing to provide their typical boost in this sector.

‘However, department stores and businesses selling domestic items reported greater sales, with some retailers citing a longer period of “Black Friday” discounts as a factor in the increase.

In an effort to spread out the cost of Christmas celebrations, shoppers stocked up on food and drink before the holiday.

Helen Dickinson, chief executive officer of the British Retail Consortium, stated, “Sales growth failed to keep pace with inflation as sales volumes fell for the eighth consecutive month.”

Black Friday delivered a little boost to businesses, but there are indications that many shoppers are delaying their holiday purchasing.

‘Retailers may be pleasantly heartened by the slight uptick in consumer confidence, but it remains significantly below levels observed even at the height of the recession due to the continued cost of living constraint…

‘Many merchants will be holding their breath as they anticipate the crucial December sales period.’

Aled Patchett, head of retail and consumer products at Lloyds Bank, stated, “November’s declining sales are not unexpected, as consumers tighten their belts in preparation for holiday shopping.” To increase seasonal sales, retailers will need to strike a balance between product price and cost inflation.

‘As a result of the current cold spell, consumer spending priorities will likely shift to focus on growing energy costs. Consumer demographics will remain a crucial difference for firms, with Generation Z benefiting from increased salaries and a greater desire to spend.

The rise in food shop sales was offset by declines in non-food retailers, online sales, and fuel sales