Retail sales slow in September as cost of living continues to bear down

Total retail sales in the UK increased by 2.7% in September, compared with 2.2% in the same month last year.

This was in line with the three-month average of 2.7% and below the 12-month average of 4.2%.

Food was in growth year on year, with sales increasing 7.4% on a total basis over the three months to September, falling below the 12-month average growth rate of 8.4%.

Non-food sales decreased by 1.2% on a total basis in the same period, falling below the 12-month total average growth rate of 0.6%. Non-food was in decline year on year in September.

Total in-store non-food sales grew by 0.3% over the three months to September. This is below the total 12-month average growth rate of 3.2%. 

Online non-food sales decreased by 3.6% in September, compared with a decline of 2.6% in September 2022 – shallower than the three-month decline of 4.1% and the 12-month decline of 3.2%.

Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: “Sales growth in September slowed as the high cost of living continues to bear down on households.

“Big-ticket items such as furniture and electricals performed poorly as consumers limited spending in the face of higher housing, rental and fuel costs. The Indian summer also meant sales of autumnal clothing, knitwear and coats have yet to materialise.

“With sales volumes down, growth has been artificially boosted by high inflation over the last two years. As inflation eases, so too will longer-term sales growth prospects. The coming months are crucial for retailers as they enter the golden quarter and they’re investing heavily to support customers and bring prices down.

“However, such efforts are challenged by the £400m increase in business rates expected next year. The chancellor should scrap the rates rise in his upcoming budget and enable retailers to deliver more value for customers at such a critical time for the economy.”