High street spending in the UK contracted for a second consecutive month in November, as looming Budget decisions led consumers to tighten their purse strings despite major discount events.
A Disappointing Black Friday Period
Official figures reveal that retail sales volumes declined by 0.1 per cent last month, following a steeper 0.9 per cent fall recorded in October. This disappointing performance came even as retailers launched extended Black Friday promotions, suggesting a significant shift in consumer behaviour.
Oliver Vernon-Harcourt, head of retail at Deloitte, commented on the trend: “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.”
He suggested that many households may have chosen to delay major spending decisions until after the government's Budget announcement, waiting for clarity on their future finances.
Sector Performance and Consumer Caution
The overall picture was mixed across different retail sectors. Supermarket sales continued to struggle, falling for the fourth month in a row as ongoing food inflation exerted heavy pressure on household budgets.
In contrast, non-food stores saw a modest one per cent rise in sales volumes. Department stores, along with footwear and leather goods retailers, reported some success, which analysts attribute to savvy discounting strategies during the Black Friday period.
Notably, online sales showed resilience, increasing by 0.7 per cent compared to October. The proportion of total sales conducted online also edged up to 28.6 per cent, underscoring a long-term change in shopping habits.
The Long-Term View and Christmas Forecast
While November 2025 sales were 0.6 per cent higher than the same month a year earlier, the broader context remains challenging. Compared to pre-pandemic levels, sales volumes were still down by a significant three per cent.
Nicholas Found, head of commercial content at Retail Economics, highlighted the fragility of the sector: “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.”
All eyes are now on the crucial Christmas trading period. The true success of recent promotional deals will be tested by return volumes in December, determining whether the discounts translate into genuine, profitable growth for retailers or merely shifted spending forward.
