Strongest retail sales growth in six months driven by ‘better than expected’ non-food sales

Total retail sales in the UK in September increased 2% year-on-year, compared with a growth of 2.7% for the same period in 2023, according to the latest BRC-KPMG sales monitor.

This was higher than the three-month average growth of 1.2% and the 12-month average growth of 1.1%.

Food sales saw the biggest increase in sales, growing 3.1% year on year over the three months to September, against growth of 7.4% in September 2023.

Non-food sales declined 0.3% year on year over the three months to September, against a decrease of 1.2% in the same period last year. This was above the 12-month average decline of 1.7% and was in growth year on year for the month of September.

In-store non-food sales fell 1.5% in the three months to September compared with a growth of 0.3% this time last year. Online non-food sales increased 3.4% year-on-year.

BRC chief executive Helen Dickinson said: “Retail sales saw the strongest growth in six months as non-food performed better than expected. As autumn rolled out across the UK, shoppers sought to update their wardrobes with coats, boots and knitwear. The start of the month also saw a last-minute rush for computers and clothing for the new academic year. Ongoing concerns of consumers about the financial outlook kept demand low for big-ticket items such as furniture and white goods.

“The coming months are crucial for the economy as retailers enter the golden quarter. But in the face of weak consumer confidence and the continued high burden of business rates, retailers’ capacity for further investment is limited. As a result, retailers are holding their breath ahead of the Budget as they work out their investment strategies for the coming year. Decisive action from the chancellor, such as introducing a 20% retail rates corrector, would help to drive investment and economic growth up and down the country.”