“Pre-budget jitters” dragged on retail sales in November, delivering the weakest growth in six months despite inflation, according to the BRC.
Total UK retail sales were up 1.4% year on year, below the 12-month average of 2.5%, according to the latest BRC-KPMG Retail Sales Monitor.
Food sales were up by 3% and non-food by just 0.1%.
In-store non-food sales performed even worse, falling by 0.3%, compared with a 12-month average of 1% growth.
Meanwhile, the proportion of non-food bought online increased to 44%, up from 43.8% in November 2024.
“Pre-budget jitters among shoppers meant the month of Black Friday did not deliver as strongly as retailers had hoped or the economy needed,” said BRC CEO Helen Dickinson.
“Sales growth was the weakest in six months, despite the elevated inflation. Not unexpectedly, online dominated, with the proportion of non-food bought online reaching its highest level since 2022.
“Many consumers took advantage of promotions, with homeware and upholstery selling well ahead of festive hosting. Fashion lagged, especially with the mild first half of November dampening demand for winterwear.”
Rachel Reeves delivered a pre-budget ‘scene setter speech’ in the first week of November, warning “we will all have to contribute”, while resisting a call to recommit to a manifesto pledge not to raise taxes for working people. It led to claims the Chancellor had unnecessarily shaken consumer confidence, including from M&S CEO Stuart Machin, who said it had left customers “very worried”.
Dickinson said: “Looking ahead to 2026, it is time public policy started prioritising measures to revive consumer confidence and keep costs of doing business down so retailers can focus on growth strategies to maximise their contribution to economic recovery.”
Linda Ellett, KPMG UK head of consumer, retail & leisure, said: “November delivered some growth in retail sales, but many retailers will be disappointed that Black Friday period promotions failed to deliver the bigger boost that they were hoping for. While the likes of computing and household appliances outperformed Black Friday week last year, total non-food sales growth across all categories was minimal overall.
“Rising household costs and nervousness about the economy continue to impact discretionary buying. But retailers will be hoping that budget clarity has now provided more certainty for consumers about their ability to spend in the months ahead.”
IGD CEO Sarah Bradbury said: “Confidence remains fragile following the budget, with the away-from-home market most exposed to reduced demand.
“In the run-up to Christmas, shoppers are expected to make selective trade-ups, balancing affordability with indulgence. Retailers that combine strong value with premium options will be best placed to win. As January arrives, expect a pullback on discretionary spending alongside a renewed focus on healthier choices.”
The November sales figures came at the same time as consumer card spending data from Barclays, showing it fell by 1.1% year on year in the month, the greatest decline since February 2021.
Essential spend dropped by 2.9%, while non-essential spending fell 0.3%.
However, Black Friday on 28 November was the busiest day of the year so far for retailers, with transaction volumes 62.5% higher than on the average day.
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