UK retail sales stall as shoppers hold back for Black Friday

UK retail sales growth slowed in October as consumers held back spending ahead of Black Friday promotions, with fashion and non-food categories showing only marginal gains.

According to the British Retail Consortium (BRC)-KPMG Retail Sales Monitor, total retail sales rose 1.6 percent year-on-year in October, below the 12-month average of 2.1 percent and marking the weakest monthly growth since May. Non-food sales, which include fashion, beauty, and homeware, edged up by just 0.1 percent, underscoring a cautious consumer mood as households contend with higher living costs and economic uncertainty.

In-store non-food sales were up 0.1 percent, while online sales were flat, following a modest 0.4 percent increase a year earlier. Online penetration for non-food items rose slightly to 37.9 percent, indicating continued digital engagement even as overall growth stagnates.

Helen Dickinson, Chief Executive of the BRC, said many shoppers postponed purchases in anticipation of seasonal discounts.

“October was a subdued month, with the weakest growth since May. Many delayed spending, waiting for Black Friday deals and cooler temperatures before buying toys, electronics and clothing,” she said. “Retailers are counting on Black Friday to deliver a vital boost, but looming Budget decisions risk undermining fragile consumer confidence.”

For fashion retailers, the figures reflect a broader slowdown in discretionary spending. Warmer weather delayed autumn wardrobe purchases, while price sensitivity continues to shape behaviour, consumers are browsing but buying less frequently, often waiting for significant promotions.

Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, added that online momentum has stalled:

“October’s retail sales growth fell back compared to recent months, with online growth drying up altogether. Retailers are now relying on Black Friday and the festive period to reverse the slowdown.”

Ellett also noted that AI-driven shopping tools are beginning to influence how consumers search for offers and gifts, presenting both challenges and opportunities for retailers seeking to capture attention in a crowded discount environment.

With demand flat and operating costs elevated, fashion retailers face a delicate balance between maintaining margins and delivering value. As promotional activity intensifies through November, Black Friday’s performance will likely set the tone for what is shaping up to be a cautious but highly competitive holiday season.