UK retail sales growth slowed in October, numbers from the British Retail Consortium and KPMG on Tuesday showed, with consumers tightening purse strings amid rising energy bills and pre-budget uncertainty.
UK retail sales rose 0.6% on-year in October, below the three-month average rise of 1.3% and the 12-month average growth of 1.0%. In October 2023, sales had risen 2.6% on-year.
‘After a good start to autumn, October’s sales growth was disappointing. This was part driven by half term falling a week later this year, depressing the October figures, and 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,’ British Retail Consortium analyst Helen Dickinson said.
Food sales rose 2.9% on-year in the three months to October, easing from a 7.9% rise a year prior. It fell short of the 12-month average rise of 4.1%.
Non-food sales edged 0.1% lower in the same three-month period, though this was a better result than the 1.0% fall registered a year prior. It is also better than the 12-month average decline of 1.6%.
In-store non-food sales over the three months to October decreased 1.2% year-on-year, online non-food sales increased by 0.4%.
KPMG analyst Linda Ellett commented: ‘While October’s growth didn’t continue at the levels seen for the retail sector in September, retailers will feel that there is mitigation and that they can pick up the pace again in November. Speculation about the impact of the budget, a holding back of demand until Black Friday promotions, and a later half term break all impacted retail sales data over the last month.
‘With clarity now provided by the Budget and many households escaping paying increased tax from their wages, retailers will be hoping for an upturn in consumer confidence and spending. Any positivity from retailers though will of course be dampened given the increased employment costs that they face. The promotional weeks around Black Friday will be the first real test of post-Budget consumer sentiment, with retailers looking to electronics promotions and new AI-linked products to build on the computing and mobile phone sales growth that has been one of the better areas of sales performance in recent months.’
Copyright 2024 Alliance News Ltd. All Rights Reserved.
