Black Friday Boosts UK Retail Sales, But Overall Spending Disappoints
Black Friday spending helped to lift retail sales in the final quarter of 2024, but overall sales proved disappointing, according to the British Retail Consortium. Total retail spending rose 3.2% year-on-year in the four weeks to December 28, the biggest rise since March. However, this was distorted by Black Friday falling in the December period in 2024, but in November in 2023.
When looking at the fourth quarter as a whole, spending increased only 0.4% in annual terms, which is a fall in sales volumes once higher prices are taken into account. This is despite total retail sales rising by 0.7% in 2024 as a whole, with like-for-like sales increasing 0.5%.
Separate data from Barclays showed that consumer spending was unchanged in December compared to the previous year, with spending on essentials dropping by 3% and spending on non-essentials rising. Spending at restaurants and pubs grew only modestly, while cinema spending jumped 52% due to the popularity of films such as “Wicked”.
Despite the disappointing sales, some economists see scope for stronger consumer spending in 2025, as wages are forecast to rise in real terms and average household savings are high compared to pre-pandemic levels.