Retail sales in the UK improved marginally in October as “uncertainty during the run-up to the budget” and “rising energy bills” spooked consumers.
Total retail sales in the UK in October increased by 0.6% year-on-year, compared with a growth of 2.6% for the same period in 2023, according to the latest BRC-KPMG sales monitor.
This was higher than the three-month average growth of 1.3% and the 12-month average growth of 1.0%.
Food sales increased by 2.9% year-on-year over the three months to October against a growth of 7.9% in October 2023.
Non-food sales declined by 0.1% year-on-year over the three months to October, against a decrease of 1.0% in the same period last year. This was above the 12-month average decline of 1.6% and was in decline year on year.
In-store non-food sales fell by 1.2% in the three months to October compared with a fall of 0.1% this time last year. Online non-food sales increased by 0.4% year-on-year.
The online penetration rate representing the proportion of non-food items bought online increased to 36.9% in October from 36.2% in October 2023.
Helen Dickinson, chief executive at the BRC, said: “After a good start to autumn, October’s sales growth was disappointing. This was partly driven by half term falling a week later this year, depressing the October figures. Moreover, November sales will likely see more of a boost. Uncertainty during the run-up to the budget coupled with rising energy bills also spooked some consumers. Fashion sales took the biggest hit as the mild weather delayed winter purchases. Health and beauty sales remained buoyant, with beauty advent calendars flying off the shelves.
“After a painful budget for retailers, the hope is it will be less painful for households in the immediate term and consumer appetite will pick up in time for the Black Friday sales and festive season. Retailers must now grapple with over £5bn of new costs announced by the chancellor, including employer national insurance, business rates and the uplift in the national living wage. Managing this will hold back investment and growth in the short term, while further squeezing already-low margins and risking inflation.”
No comments yet