UK retailers recorded a surprising drop in sales in November, according to official figures released by the Office for National Statistics (ONS).
The retail sector held steady, though Friday's news was foreshadowed by a pre-Christmas earnings alert from Currys PLC (LSE:CURY) on Thursday.
The ONS figures showed a 0.4% decrease in retail sales volumes for the month, following a rise of 0.9% in October.
Analysts had predicted a small rise of 0.3% as consumers prepared for the festive period and took advantage of November's Black Friday sales.
However, ONS director of economic statistics, Darren Morgan, said: "Retail sales fell overall in November, driven by a notable drop for online retailers, with Black Friday offers failing to provide their usual lift in this sector."
Danni Hewson, financial analyst at AJ Bell, commented on the figures: "Retail’s fairy godmother has failed to wave her magic wand and despite Black Friday promotions and a rush by households to spread the cost of a Christmas feast, sales are down."
Hewson noted that consumers are having to make tough choices about what they want for Christmas, as they worry about the rising cost of food and try to save money.
"People are paying a whole lot more to buy a whole lot less and that’s hurting consumers and retailers alike," she said.
The disappointing figures suggest that retailers will face an even tougher 2023 as the UK economy enters a long recession and the prospect of further interest rate rises looms.
However, there was some good news for department stores, which saw an increase in sales, and household goods stores, where there was a flurry of activity as people snapped up discounted items such as air fryers and electric blankets.