November retail sales disappoint as consumer confidence wanes.

New reports released on Tuesday morning indicate that November retail sales and consumer spending were generally underwhelming, reinforcing earlier suggestions of subdued consumer confidence. It is worth noting that different reporting methodologies mean that specific figures vary between reports. Barclays, for instance, reported that consumer card spending experienced its most significant year-on-year decline since 2021, driven by persistently subdued consumer confidence.

According to the Barclays data, overall consumer card spending, which encompasses categories like dining out and entertainment in addition to retail, saw a 1.1% decrease year-on-year. This figure fell substantially short of the latest CPIH inflation rate of 3.8%. The decline was most pronounced in essential spending, which dropped by 2.9%, while non-essential spending experienced a more modest fall of 0.3%. Notably, this marked the first time non-essential spending had decreased since July 2024. Despite the overall weak month, Black Friday offered a brief respite for retailers, driving a 62.5% rise in transaction volumes compared to the average day of the year, making it the busiest shopping day of 2025.

Analyzing specific sectors using card spending data, Barclays highlighted mixed results. Spending on pharmacy, health, and beauty products continued its robust performance, increasing by 6.1% year-on-year in November, even as transaction growth in the sector registered a negative 2.4%. Clothing stores experienced a positive trend, with spending up 1.3% and transaction growth rising by 3.6%. Conversely, department stores faced significant challenges, reporting an 8.2% decline in spending and a 6.4% decrease in transaction growth.

Meanwhile, the BRC-KPMG Retail Sales Monitor presented a slightly different perspective, reporting that total UK retail sales increased by 1.4% year-on-year in November. While this represents growth compared to a decline of 3.3% in November 2024, it was below the 12-month average growth rate of 2.5%. Non-food sales specifically saw a marginal increase of 0.1% year-on-year, against a significant decline of 7.9% in the previous year. In-store non-food sales decreased by 0.3%, following a 6.2% fall in November 2024, while online non-food sales increased by 0.5% year-on-year.

There was a discrepancy in reporting specifically regarding fashion sales. The BRC-KPMG data suggested that both fashion and footwear experienced a slight dip during the month. This contrasts with the Barclays report, which indicated a slight increase in clothing sales. However, both reports implied that despite significant efforts by fashion retailers to boost sales through promotions, their success remained limited. Helen Dickinson, chief executive of the British Retail Consortium, noted that "pre-Budget jitters among shoppers meant the month of Black Friday did not deliver as strongly as retailers had hoped or the economy needed."

Dickinson added that sales growth for November was the weakest in six months, despite elevated inflation. Online channels dominated, with the proportion of non-food items purchased online reaching its highest level since 2022. Consumers capitalized on promotions, leading to strong sales in homeware and upholstery in anticipation of festive hosting. In contrast, fashion lagged, partly attributed to the mild weather during the first half of November, which dampened demand for winterwear.