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Retail sales fall as Black Friday deals fail to lure shoppers

December 20, 2025
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Josh MartinBusiness reporter

Getty Images A crowd of people dressed in warm clothing walk along Oxford Street in London, in front of a department store advertising discounts in-store for Black FridayGetty Images

Retail sales fell unexpectedly in November as Black Friday discounts failed to boost spending, official figures show.

Supermarket sales fell for the fourth month in a row, while discounts at retailers across November did not lift Black Friday spending as much as in recent years, the Office for National Statistics (ONS) said.

Sales volumes fell by 0.1% last month, against analysts’ expectations of a 0.4% increase. However, sales over recent months have risen thanks to more computers, clothing and furniture purchases.

A separate survey released on Friday suggested shoppers have been willing to spend in the lead-up to Christmas, with consumer confidence in December matching a 16-month high.

The GfK consumer confidence survey also found households were feeling better about the prospects for their finances in the year ahead than previously, although sentiment remains subdued.

Oliver Vernon-Harcourt, head of retail at Deloitte, said the cut in interest rates to 3.75% on Thursday could strengthen shoppers’ confidence and “retailers will hope this can spur a rebound in consumer spending” during the crucial pre-Christmas trading period.

On Thursday, the Bank of England said its survey of businesses had suggested people were “keenly focused” on value for money. Companies responding to its survey “regularly cited ” the Budget as discouraging spending in recent months.

AJ Bell head of financial analysis Danni Hewson said speculation about Budget measures was to blame for “unnerving consumers at the very peak of the festive shopping period.”

“Shoppers were impacted by all the speculation about potential tax hikes and continued to display an abundance of caution despite Black Friday temptations,” she said.

The boss of outdoors retailer Mountain Warehouse Mark Neale told the BBC’s Today programme the Budget speculation had been “unhelpful” to the industry, although his company had enjoyed a record sales period.

The ONS’s survey of households showed 31% of adults said they planned to take advantage of Black Friday deals on offer, but 19% said they planned to buy less than last year.

Separately, the ONS announced on Friday that UK government borrowing was higher than expected last month.

Borrowing – the difference between public spending and tax income – was £11.7bn in November, whereas analysts had been expecting about £10bn.

However, the figure was £1.9bn lower than in the same month last year and was the lowest November borrowing for four years. The Office for National Statistics (ONS) said the fall was mainly due to higher receipts from taxes and National Insurance contributions.

Government borrowing for the financial year to November has now reached £132.3bn, which is £10bn ahead of where it was at the same point last year.

Part of that is down to the government reversing a decision to restrict winter fuel payments, as well as paying higher salaries in the public sector and inflation-linked benefits.

A Bar chart titled 'Government borrowing in November', showing the UK's public sector net borrowing, excluding public sector banks, from November 2023 to 2025. In November 2023, public sector net borrowing stood at £15.0 billion. It then fell to £13.6 billion in November 2024, and again to £11.7 billion in November 2025.

Chief Secretary to the Treasury James Murray said last month’s Budget would “deliver on our pledge to cut debt and borrowing.”

“£1 in every £10 we spend goes on debt interest – money that could otherwise be invested in public services,” he said.

But shadow chancellor Mel Stride said the government was “piling up ever higher debt”.

“Having scrapped the two-child benefit cap and abandoned welfare reform, Labour are borrowing more and more to fund irresponsible spending,” Stride said.

Matt Swannell, chief economic adviser to the EY Item Club said the government would need to “deliver a significant slowdown in borrowing over the next few months” if it is to hit the Office for Budget Responsibility’s target of £138.3bn for the current financial year.



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