Consumer spending bounced back in November

Seasonal shopping boosted retail in November, with consumer card spending increasing by 2.9 percent, as British consumer confidence to spend on non-essential items reached its highest level since April.

The data from Barclays revealed that the high street enjoyed an uplift from early Christmas shopping and extended Black Friday sales in November, with spending on non-essential items growing by 2.7 percent, higher than in October (2.0 percent).

The late arrival of cold and wet weather encouraged shoppers to update their winter wardrobes, added Barclays, with clothing and department store spending increasing by 2.8 percent and 5.0 percent, respectively.

Barclays data also shows that the extended sales period put a dampener on Black Friday itself, as transaction volumes were down 0.6 percent compared to the same day in 2022. However, despite its reputation, Black Friday wasn’t the busiest shopping day in November, as transactions on Sunday, November 26, dubbed ‘Super Sunday’ outpaced Black Friday by 13.5 percent, demonstrating it is no longer a single-day event.

This comes as six in 10 (59 percent) stated that they are actively seeking out deals and discounts more often due to rising costs. Of this group, over half (56 percent) are making use of loyalty programmes, while 40 percent regularly search online for discount codes before making a purchase.

Esme Harwood, director at Barclays, said in a statement: "Shoppers got into the festive spirit early this year, flocking to the high street to take advantage of month-long Black Friday sales, and unlocking long-awaited retail growth.

“November also marked a turning point for consumer sentiment – confidence in personal finances improved, with Brits starting to feel less concerned about some of 2023’s defining issues, such as inflation, interest rates, and food prices – so there are reasons to be cautiously optimistic as we look ahead to Christmas and the New Year.”