Black Friday and Christmas shopping fail to boost beleaguered high streets

Black Friday and Christmas shopping failed to boost sales for Britain’s beleaguered high streets in November, according to the first of two grim economic indicators on Friday.

The Office for National Statistics (ONS) said that retail sales volumes dropped by 0.4 per cent last month, indicating a much weaker month than expected and following a rise of 0.9 per cent in October. Economists had predicted that sales would rise by 0.3 per cent.

Shops and businesses are “holding their breath” for better trade in December, said the British Retail Consortium.

“Sales growth failed to keep pace with inflation as sales volumes dropped for the eighth month in a row,” said chief executive, Helen Dickinson.

ONS director of economic statistics Darren Morgan said there had been a “notable drop for online retailers, with Black Friday offers failing to provide their usual lift.”

However, department stores and household goods shops did report increased sales, he said.

Food store sales bucked the trend with volumes rising 0.9 per cent in November, suggesting that shoppers were stocking up early for Christmas.

Nevertheless, in recent months, supermarkets have highlighted that they are seeing a decline in volumes sold because of the increased cost of living including higher food prices, the ONS said.

Black Friday was on 25 November and the figures cover 30 October to 26 November – meaning that Cyber Monday and any following promotion periods will be included in December’s report.

Erin Brookes, the head of retail in Europe at management consultancy Alvarez & Marsal, said: “It is clear that retailers are struggling to shift stock, with Christmas sales beginning earlier than in recent years and discounts being offered for a longer period.

“The jury is out on whether the so-called ‘Golden Quarter’ will deliver the festive cheer that the retail sector needs.

“A combination of the cost of living crisis, strike disruption and severe weather will likely curtail spending further in December, affecting both in-store and online purchases.”

Meanwhile, the number of workers employed by private companies in the UK is falling for the first time in close to two years, as the country is widely thought to be in recession.

A new survey found that there has been a reduction in headcounts so far this month, the first time since February 2021 that employment has dropped.

“It’s no surprise to see that businesses are battening down the hatches, most notably by reducing headcounts, in a sign that the downturn not only has further to run but could yet accelerate again, especially given December’s further hike to interest rates,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

The manufacturing sector drove the drop in workforce numbers, while in the service sector employment stagnated after 21 months of consecutive growth.

It caps a week that saw ongoing double-digit inflation and a 0.5 per cent rise in interest rates by the Bank of England, to 3.5 per cent.

London’s top shares endured a second straight day of heavy losses on Friday, reflecting global drops.

The FTSE 100 closed down by nearly 1.3 per cent, losing 94.05 points and closing at 7,332.12.