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UK retailers eye continued growth from Black Friday sales

Dec 10, 2024 United Kingdom

Following a slow start to the festive season and subdued consumer confidence, UK retailers are hopeful that Black Friday's boost in spending will sustain momentum in the lead-up to Christmas

Retail Sales

Retail sales in November showed a challenging start to the festive season, as figures declined amid shifting consumer spending patterns and economic pressures. According to Helen Dickinson, Chief Executive Officer at the British Retail Consortium (BRC), weak consumer confidence and rising energy costs have contributed to subdued non-food spending.

Fashion sales, notably winter clothing, faltered as households delayed purchases, while health-related spending saw an uptick due to seasonal illnesses. Retailers are now relying on a surge in December shopping to recover from the slow start, with concerns mounting over next year’s financial strain from rising costs.

Consumer Confidence

Consumer confidence in the UK remains subdued as the holiday season approaches, with minimal change in sentiment following the Chancellor’s Budget, according to the latest BRC-Opinium data.

While there was a slight improvement in expectations regarding personal financial situations, confidence in the broader economy dipped further. Personal retail spending expectations showed a marginal increase, reflecting seasonal preparations for Christmas, but overall spending sentiment remained unchanged. Savings expectations stayed the same, indicating continued caution among households.

Black Friday

Black Friday brought a significant boost to UK retailers, with footfall increasing by 6.7% compared to the same period last year, according to the BRC. Retail parks and shopping centres saw the highest surge in visitors, benefiting from the timing of Black Friday closer to Christmas and aligning with payday for many consumers.

Non-food sales rose by 5.5% on a comparable basis, with categories such as computing, fashion and beauty seeing strong demand. The event, while still predominantly omnichannel, experienced notable online growth, reflecting a balanced approach by shoppers.

Retailers welcomed the recovery in consumer spending during Black Friday week, which offset sluggish sales earlier in November. According to Linda Ellett from KPMG, nearly all categories experienced growth, with furniture being the exception. Retailers are now focusing on festive promotions and Boxing Day sales to maintain this momentum, ensuring Christmas gift buying continues to drive footfall and sales through December.

Image Credits: retailgazette.co.uk

United Kingdom Confidence Retail Sales