Retailers suffer subdued October ahead of Black Friday

Retailers suffered a subdued October as consumers held off on spending ahead of Black Friday, figures show.

Total UK retail sales increased by 1.6% year on year, below the 12-month average of 2.1% and the weakest growth since May, according to the British Retail Consortium (BRC) and KPMG.

BRC chief executive Helen Dickinson said: “October was a subdued month, with the weakest growth since May.

“Many delayed spending, waiting for Black Friday deals and cooler temperatures before buying toys, electronics and clothing.

“Furniture and other homeware fared better as people began preparing their homes ahead of family festive gatherings.

“Food sales also saw good growth, but this was mostly driven by higher prices rather than higher volumes.”

Linda Ellett, UK head of consumer, retail and leisure markets at KPMG, said: “With Black Friday sales already getting under way and Christmas displays also now up in many stores, retailers are aiming at swiftly reversing the slowdown in sales growth seen during October.

“Our own research indicates that the majority of shoppers are considering purchases over the Black Friday period, and that AI will play a growing role in how consumers search for and find promotional offers or gifts.”

Separate figures from Barclays suggest consumer card spending fell 0.8% year-on-year in October, a slight drop from September’s 0.7% fall.

Discretionary spending

Essential spending fell – by 2.5% – for the sixth consecutive month, while growth in discretionary spending was flat at 0.1% as a combination of pre-Budget anticipation, upcoming Black Friday deals and milder weather led consumers to delay purchases or cut back.

The bank found that confidence in the strength of the UK, European and global economy all declined month-on-month, however confidence in household finances fell most significantly from 74% to 63%.

The proportion of those confident in their job security and ability to spend on non-essential items both reached their lowest points since 2023, at 44% and 51% respectively.

Karen Johnson, head of retail at Barclays, said: “Looking ahead to the autumn Budget, consumers are taking a considered approach to spending.

“While confidence declined in October, we’re seeing resilience within categories linked to health and wellbeing, suggesting people are still willing to invest in the areas that matter most to them.

“With Black Friday and Christmas on the horizon, we expect spending patterns to shift again as shoppers seek out value and seasonal offers.”