UK retail sales fall for first time since May
By Abigail Townsend
Date: Friday 21 Nov 2025
(Sharecast News) - Retail sales unexpectedly fell in October, official data showed on Friday, as consumers held back on spending ahead of the Black Friday sales.
According to the Office for National Statistics, sales slid 1.1%, reversing an upwardly-revised 0.7% uplift in September.
Analysts had been looking for flat sales.
Grant Fitzner, chief economist at the ONS, said: "In October, monthly sales fell back for the first time since May.
"Supermarkets, clothing stores and online retailers all saw slower sales, with feedback from some retailers that consumers were waiting for November's Black Friday deals."
In the three months to October, sales rose 1.1% compared to the previous quarter, supported by strong clothing sales in the summer and tech sales in September and October.
Year-on-year, sales rose 0.2% in October, also below expectations, for a 1.5% jump.
The last three months of the year are critical for most retailers, as shoppers take advantage of Black Friday deals to buy big-ticket items and spend heavily on festive gifts, food and drink.
However, the sector is battling a number of headwinds this year, including persistently sticky inflation - especially in food - historically high interest rates and a loosening jobs market.
The Budget is also much-later than normal, at the end of November, and weeks of speculation in the build-up have weighed heavily on sentiment. A survey by GfK, also published on Friday, showed consumer confidence had fallen in October.
Danni Hewson, head of financial analysis at AJ Bell, said: "The constant pitch rolling from the government has created so much uncertainty, it's hardly surprising that shoppers are keeping their powder dry.
"This is supposed to be the golden quarter, when businesses make enough cash to see them through the new year blues. So many will be questioning the chancellor's decision to hold the Budget so late this year."
The EY Item Club said: "The outlook for the sector is one of sluggish growth.
"Real income growth is set to cool, as softening pay growth, high inflation, tighter fiscal policy and the lagged passthrough of past interest rate rises for some mortgages take a toll.
"Even if consumers shed some of their caution, spending growth is likely to be subdued."
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