Retail sales boosted in October as Christmas shopping starts early

The Office for National Statistics (ONS) retail sales figures for October showed a 6.4% increase in online revenues was the key driving factor behind a 1.2% bump in total spending compared to September. 

Overall, the ONS found sales were up 5.8% year on year, as consumers flocked both to purchase gifts as warnings of another national lockdown began to circulate from mid-October.

While the boost in October will be a welcome shot in the arm for a struggling sector, many analysts have warned this November and December will likely be the toughest ever for retailers. 

EY UK and Ireland retail partner Silvia Rindone warned that customers would likely be cautious about spending over Christmas and that given the huge migration to online, retailers could expect issues with supply chain and last-mile delivery. 

“Retailers will be facing a significant increase in online purchasing over the coming weeks and operational challenges will rise to the surface. 

“More businesses are preparing for click and collect, hoping to capture some of the sales while lockdown is still in place. Retailers, therefore, need to reinforce the technological and fulfilment infrastructure necessary to meet demand,” she said.

As with Christmas, Black Friday sales and promotional activity has begun earlier this year.

Deloitte head of retail Ian Geddes said: “Black Friday sales have begun earlier than ever this year, as retailers look to ease already pressured supply chains and spread the one-day promotional period over two weeks. With many non-essential shops remaining closed for Black Friday, the annual sales event will likely look and feel very different this year, with consumers making fewer impulse buys and more deliberate purchases. 

“As the party season goes online, clothing purchases – where some of the greatest Black Friday discounts have traditionally been found – will likely be driven by comfort-wear rather than party attire. In the advent of virtual gatherings, ‘waist-up wear’, such as novelty pieces and make-up, are also likely to prove popular.”