Retail sales see weak growth in October amid pre-budget uncertainty
Lastly, online non-food sales increased by 0.4% year on year in October, against an average decline of 2.5% in October 2023
Total retail sales in the UK nudged up by only 0.6% in October, compared with a growth of 2.6% in October 2023, as retail was hit by ongoing uncertainty surrounding the autumn budget, the BRC has reported.
The BRC also attributed this slowdown to the fact that the October half-term fell a week later than usual, but stated that this will give November sales a boost.
It noted that consumer confidence was low during the month as a result of uncertainty around the budget and rising energy bills.
Food sales increased 2.9% year on year over the three months to October, compared with growth of 7.9% in October 2023.
However, non-food sales decreased 0.1% year on year over the three-months to October, against a decline of 1.0% in October 2023.
In-store non-food sales over the three months to October fell 1.2% year on year, compared with a 0.1% fall in October 2023.
Lastly, online non-food sales increased by 0.4% year on year in October, against an average decline of 2.5% in October 2023.
Helen Dickinson OBE, BRC CEO, said: “After a good start to Autumn, October’s sales growth was disappointing. This was partly 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.”
She added: “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 £5bn 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.”
