UK total retail sales increased by 0.6% year-on-year in October, against a growth of 2.6% in October 2023, however fashion sales faltered as the mild weather saw consumers delay winter purchases.
In-store non-food sales decreased by 0.1% year-on-year over the three months to October, against a decline of 1% in October 2023, while online non-food sales increased by 0.4% against an average decline of 2.5% in October 2023.
That’s according to the latest data from the British Retail Consortium and KPMG’s retail sales monitor, covering the four weeks from 28 September to 27 October 2024.
Helen Dickinson, Chief Executive Officer at the British Retail Consortium, said: “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.
“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 £5 billion of new costs announced by the Chancellor, including in 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.”
Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, added: “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.”
