Black Friday boost UK's November sales boost

Britain s retailers benefited from a November sales boost, boosted by Black Friday discounts and colder weather, as consumers bought winter coats, hot water bottles and hooded blankets, according to industry data.

In its latest snapshot of high street and online spending, the British Retail Consortium BRC said sales growth picked up last month compared to October, despite mounting concerns over the cost of living crisis.

In November, total sales rose by 4.2% compared to the same month a year ago, up from an annual growth rate of 1.6% in October. The BRC warned that much of the rise was due to sky-high inflation pushing up the value of goods being sold, masking weaker sales volumes.

Helen Dickinson, chief executive of the BRC, said sales picked up as Black Friday discounting marked the beginning of the festive shopping season. Sales growth remained far below current inflation, suggesting volumes continued to be down last year. As the weather turned, retailers reported growth in sales of winter clothes, while Black Friday boosted sales of home furnishings as households traded nights out for budget nights in.

According to Barclaycard, the colder weather led households to switch their heating on for the first time this season, which caused spending on utilities to grow 40.1% above the 36% growth rate in October. Spending on takeaways and discount stores also went up.

The credit card provider, which handles almost half of all card transactions in Britain, said consumers were worried about the impact of rising household bills on their personal finances.

The growth may not carry over into the traditional Christmas shopping season, according to Barclaycard payments' transaction volumes, up compared to 2021, according to the data from Barclaycard payments.

According to a survey of over 2,000 adults, 57% plan to reduce spending on gifts this year, and 45% will cut back on festive activities and socialising.

The figures show that inflation is above 11% as households struggle with high energy bills and the rising cost of a weekly shop, with food and non-alcoholic drink inflation at the highest levels since 1977. Economists believe that soaring living costs will lead to consumers tightening their belts, leading to the economy falling into recession.

Paul Martin, UK head of retail at the accountancy firm KPMG, said sales categories such as toys, computing and baby equipment had fallen for several months in a row in a row, a performance that even the start of the festive season had failed to reverse.