Black Friday deals drive jump in UK retail sales

Retail sales grew stronger than expected last month as shoppers snapped up Black Friday bargains and bought Christmas presents, according to official figures.

The Office for National Statistics (ONS) revealed that retail sales volumes increased by 1.3% in November.

It was ahead of the predictions of economists, who had forecast 0.4% growth for the month.

The ONS also revised its data for October upwards, reporting that there was zero growth in retail sales after previously estimating a fall of 0.3%.

ONS director of economic statistics Darren Morgan said: “Retail sales grew strongly in November as heavy Black Friday discounting encouraged shoppers to spend.

“However, with the three-month trend continuing to fall and overall sales still below pre-pandemic levels, it’s still a challenging time for retailers.

“In the latest month, household goods retailers, clothing shops and department stores all reported robust sales, with computer stores, sports equipment, toy shops and cosmetics stores particularly benefitting from the impact of their Black Friday promotions.”

Nicholas Hyett, Investment Manager at Wealth Club, noted that the high level of discounting would put pressure on margins but added that retailers would be buoyed by a robust performance at bricks and mortar stores.

"Discounting on Black Friday and, in many cases, throughout November fuelled a golden month for retailers, with retail sales performing considerably better than expected.

"Significant promotions that will inevitably put weight on margins, but a particularly strong result from store based retailers will be a relief for the struggling higher street nonetheless. Even department stores, long the sick man of the British high street, did well, with volumes up 2.3%.

Looking ahead the big question is whether heavy discounting in November has simply pulled forward Christmas shopping - leaving a rather dreary December ahead," Hyett said.