UK retail sales growth slowed in October as households are putting off their Christmas shopping until they can “grab a bargain” over Black Friday, according to the BRC-KPMG Retail Sales Monitor.
Total retail sales increased by 2.5% in October, compared with a 1.6% rise in October 2022. This was below the three-month average of 3.1% and the 12-month average of 4.2%.
Food sales grew 7.9% on a total basis over the three months to October and was below the 12-month average growth of 8.5%.
Non-food sales decreased 1% on a total basis in the three months to October.
In-store non-food sales inched down 0.1% on a total basis since October 2022 while online non-food sales slipped 2.5% in October against a 6.3% decrease in the same period last year.
BRC chief executive Helen Dickinson said: “Retail sales growth slowed as high mortgage and rental costs further shook consumer confidence. Many households are also delaying their Christmas spending in the hopes they can grab a bargain in the upcoming Black Friday Sales.
“The cost-of-living squeeze meant more was spent on lower-price indulgences, such as beauty products – the so-called lipstick effect. Meanwhile, the arrival of some colder weather helped to boost fashion sales, particularly for outdoor wear.
“Retailers continue to invest in lowering prices and streamlining their operations, part of their commitment to delivering an affordable Christmas for their customers. But this is put at risk by the £470m-per-year rise in business rates facing retailers next year.
“The chancellor must freeze rates in the upcoming autumn statement, to prevent extra cost pressure, pushing up prices for struggling consumers.”
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