British retailers are pinning their hopes on a bumper Black Friday after dismal figures showed sales slumped last month.
Pre-Budget jitters were blamed for shoppers holding back on spending in October, as sales volumes dropped 0.7 per cent according to the Office for National Statistics (ONS).
A ‘notably poor month’ for fashion was the driving force behind the slump, according to ONS senior statistician Hannah Finselbach.
Clothing stores fell 3.1 per cent, following end-of-season sales growth in the month before. But Finselbach added: ‘Retailers across the board reported consumers held back ahead of the Budget’.
Mild weather also meant shoppers have waited to fork out on winter coats and hats. But retailers are hoping discounts will boost sales in the critical ‘golden quarter’ ahead of Christmas.
Black Friday is traditionally an American shopping discount day but has been imported into the UK, with sales starting at the end of November.
High hopes: Black Friday is traditionally an American shopping discount day but has been imported into the UK, with sales starting at the end of November
Jacqui Baker, head of retail at accountancy firm RSM UK said sales were ‘expected to pick up with Black Friday deals and last-minute Christmas shopping in December providing a spending boost’.
Baker added: ‘It was a concerning start to the golden quarter which won’t come as good news for retailers given it’s supposed to be the start of their busiest period.’
Boots has said it anticipates its ‘biggest-ever Black Friday month’ as customers carefully plan ahead for Christmas.
And this week Lidl boss, Ryan McDonnell, said the discount supermarket was on course for its ‘biggest Christmas ever’.
Retailers are hoping that consumer confidence will improve now that uncertainty over the Budget and the US presidential election has passed.
Separate figures yesterday from polling company GfK are likely to have boosted those hopes.
They showed that consumer confidence improved, with shoppers indicating they were more willing to buy expensive, big-ticket items. However retailers still face Labour’s tax raid on National Insurance.
The bosses of Marks & Spencer and Tesco were among more than 80 who signed a letter this week warning that the Budget will mean shops will close, jobs will be lost and prices will go up.
M&S chairman Archie Norman has warned the lowest-paid would bear the brunt of the increase to employers’ National Insurance contributions.
The High Street has been disproportionately affected by the £25billion tax raid, due to looming rises to business rates and a workers’ rights package that will cost employers £5billion.
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