Spending on non-essentials ‘rose in November as shoppers prepared for Christmas’
Strong Black Friday sales helped to push up discretionary spending, Nationwide Building Society said.
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Your support makes all the difference.Strong Black Friday sales helped to push households’ discretionary spending higher in November compared with October, according to Britain’s biggest building society.
Despite many retailers offering discounts well in advance of Black Friday (November 25), the day accounted for around 5% of all transactions made by Nationwide Building Society members during the month, as people tried to grab a bargain before Christmas.
This equated to 7% of the month’s overall consumer spending, according to Nationwide’s data.
The society’s latest monthly spending report analysed around 230 million debit card, credit card and direct debit transactions made by its members between November 1 and 30.
Spending on clothing and shoes was up by more than a fifth (22%) compared with October and up by 9% annually.
Black Friday sales play a significant role in driving sales, particularly on the days surrounding the event
Spending in general retailers and department stores rose by 18% month-on-month. Other shops, such as antique shops, arts and crafts stores, florists, jewellery stores and record stores also recorded 8% monthly spending growth, Nationwide said.
Spending to pay off existing debt was down by 5% month-on-month, but up by 3% compared with November 2021.
Nationwide suggested that people are likely to have diverted some spare money towards festive purchases.
Mark Nalder, payments strategy director at Nationwide Building Society, said: “Black Friday sales play a significant role in driving sales, particularly on the days surrounding the event.”
John Lewis Finance said Christmas shopping activity is expected to peak on Saturday December 17 as people make their final festive purchases.
Six in 10 (61%) Christmas shoppers have set a budget for their presents, research commissioned by John Lewis Finance among over 2,000 people has previously found.
More than a third (36%) of Christmas shoppers are increasing their use of vouchers this year, the research suggests.
Jason Morrey, head of John Lewis Partnership Credit Card, said: “With household costs rising, shoppers are wisely looking for ways to ensure they can have a great Christmas and treat themselves and their loved ones, without breaking the bank.”