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British retailers are pinning their hopes on a bumper Black Friday after disappointing figures showed sales fell last month.
Pre-Budget jitters were blamed for shoppers curbing their spending in October as sales volumes fell 0.7 per cent, according to the Office for National Statistics (ONS).
A “remarkably poor month” for fashion was the driving force behind the crisis, according to ONS senior statistician Hannah Finselbach.
Clothing stores fell 3.1 percent, following growth in end-of-season sales the previous month. But Finselbach added: “Retailers across the board reported that consumers fell behind budget.”
The mild weather also meant shoppers waited to buy winter coats and hats. But retailers hope the discounts will boost sales in the critical “golden quarter” before Christmas.
Black Friday is traditionally a day of discount shopping in the US, but it has been imported to the UK with sales starting at the end of November.
High hopes: Black Friday is traditionally a day of shopping discounts in the US, but it has been imported to the UK with sales starting at the end of November.
Jacqui Baker, retail director at accountancy firm RSM UK, said: “Sales were expected to pick up with Black Friday deals and last-minute Christmas shopping in December, which would provide a boost to spending.”
Baker added: “It was a worrying start to the golden quarter which will not be good news for retailers given it is supposed to be the start of their busiest period.”
Boots has said it is anticipating its “biggest ever Black Friday month” as customers carefully plan for Christmas.
And this week, Lidl boss Ryan McDonnell said the discount supermarket was on track to celebrate its “biggest Christmas ever”.
Retailers expect consumer confidence to improve now that uncertainty over the budget and the US presidential election has passed.
Yesterday’s figures from pollster GfK are likely to have raised those hopes.
They showed that consumer confidence improved, with shoppers indicating they were more willing to purchase big-ticket, big-ticket items. However, retailers still face Labour’s tax raid on National Insurance.
Bosses at Marks & Spencer and Tesco were among more than 80 who signed a letter this week warning that the Budget will mean stores will close, jobs will be lost and prices will rise.
M&S chairman Archie Norman has warned that the lowest paid would be hardest hit by rising employers’ National Insurance contributions.
The High Street has been disproportionately hit by the £25bn tax raid, due to looming business rates rises and a workers’ rights package that will cost employers £5bn.
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