Britain's retail sales showed a modest increase in November but fell short of economists' expectations, as clothing retailers reported tough trading conditions despite early Black Friday promotions.

The Office for National Statistics (ONS) reported that retail sales volumes rose by 0.2 per cent in November, following a 0.7 per cent decline in October. The increase was below economists' forecasts of 0.5 per cent growth.

While food stores saw their first sales increase in three months, rising 0.5 per cent with particularly strong growth in supermarkets, clothing retailers struggled significantly. Clothing sales fell by 2.6 per cent to their lowest level since January 2022.

ONS senior statistician Hannah Finselbach said: "For the first time in three months there was a boost for food store sales, particularly supermarkets. It was also a good month for household goods retailers, most notably furniture shops. Clothing store sales dipped sharply once again, as retailers reported tough trading conditions."

"It was a flat picture for retail sales in November, notably excluding the Black Friday week, that will be included within the December read," said Bogdan Toma, partner at McKinsey & Company. "The notable aspect last month was the sharp decline in online retail sales, by over 4 per cent. This is spread across all online retail sectors, from food to fashion and household goods."

The figures only captured early Black Friday promotions, as the official Black Friday date of 29 November fell outside the ONS reporting period, which covered four weeks from 27 October to 23 November 2024.

"After a positive start to the Golden Quarter, November sales stagnated, with higher energy bills and low consumer sentiment impacting spending," said Kris Hamer, director of insight at the British Retail Consortium. "Clothing suffered from a fall in sales, with milder weather putting many off updating their winter wardrobe."

Online retail saw significant declines, with online spending falling 4.3 per cent during November 2024, marking the largest drop since March 2022. The proportion of sales made online decreased from 27.5 per cent in October to 26.2 per cent in November, reaching its lowest level since February 2024.

When compared with pre-pandemic levels in February 2020, overall sales volumes remained 1.6 per cent lower, highlighting the ongoing challenges facing British retailers.

Looking at the broader picture, sales volumes rose by 0.3 per cent across the three months to November 2024 when compared with the three months to August 2024, suggesting a modest underlying improvement in retail activity.

---