Retail sales lay limp in September as Indian summer rocks sector
UK total retail sales continued to limp along in September with growth up just 2.7 per cent against a figure of 2.2 per cent for September last year as an Indian summer and cost of living pressures walloped the sector.
Non-food sales declined 1.2 per cent on a total basis over the three months to September, according to the latest reading from the British Retail Consortium (BRC). This is below the 12-month average growth of 0.6 per cent.
Food sales increased 7.4 per cent on a total basis over the three months to September, but remained below the 12-month average growth of 8.4 per cent.
Helen Dickinson, chief of the BRC, said dwindling sales were due to customers putting off buying “big ticket” items such as furniture and electricals as shoppers directed their pennies towards bills and home payments.
She said: “Sales growth in September slowed as the high cost of living continues to bear down on households. Big ticket items such as furniture and electricals performed poorly as consumers limited spending in the face of higher housing, rental and fuel costs.”
An usually hot September also drove down sales for clothing retailers as shoppers put off buying autumn wear as warm weather persists.
The drab reading comes ahead of retail’s ‘Golden Quarter’ with much of the sector hoping the run up to Christmas will help drive up sales in one final push for the year.
A better-than-expected inflation reading will also hopefully improve buyer sentiment,
Paul Martin, head of retail at KPMG, said: “With the warmer weather delaying household heating being switched on, positive news around falling inflation and a hold on rising interest rates, consumers will hopefully be feeling a bit more confident as thoughts turn to Christmas shopping.
“After years of battling challenges, the resilience of the retail sector has been dented and we are starting to see the gap between the strongest and the weakest on the high street widen.
He added: “The fight for Christmas shoppers will be fierce this year, with promotions likely to be earlier and abundant in a bid to loosen tight household purse strings. “