Retail sales drop in September as demand for household goods wanes
Sales volumes fell by 0.8% in the three months to September 2023 when compared with the previous three months
Retail sales have fallen by 0.9% in September, following a rise of 0.4% in August 2023, according to the new figures from the ONS.
Looking at the quarterly picture, sales volumes fell by 0.8% in the three months to September 2023 when compared with the previous three months.
Non-food stores sales volumes fell by 1.9% in September 2023, with retailers reporting that the fall over the month was because of continuing cost of living pressures, alongside the unseasonably warm weather which saw clothing stores sales volumes falling by 1.6% in September.
Within non-food, household goods stores sales volumes reported a monthly fall of 2.3% in September 2023 because of falls in furniture and lighting stores.
Meanwhile food stores sales volumes rose by 0.2% in September 2023, following a rise of 1.4% in August 2023. However, looking at the quarterly picture, sales volumes fell by 1.3% in the three months to September 2023 when compared with the previous three months.
Non-store retailing – predominantly online retailers – sales volumes fell by 2.2% in September 2023, following a fall of 0.9% in August.
When compared with their pre-coronavirus pandemic level in February 2020, total retail sales were 17.1% higher in value terms, but volumes were 2.5% lower.
Commenting on the figures, Helen Dickinson, chief executive of the BRC, said: “As mortgages, rents and fuel costs continued to weigh on households, sales were impacted for big ticket items such as computers, electricals and larger household appliances. Meanwhile, cosmetics and toiletries had another strong month.”
“With the “Golden Quarter” fast approaching, retailers are hopeful that easing inflation we have seen in recent months will boost consumer confidence. Retailers will continue to support customers by bringing prices down wherever they can. But, the support they can provide will be limited by the expected £470m-a-year rise to business rates from next April.”
Dickinson concluded: “The Chancellor must scrap the rate rise in his upcoming Budget so retailers can continue to deliver the best value for customers over the festive period and beyond.”
