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Winterwear, Halloween boost UK retail sales in Oct 2016
Nov '16
Retail sales in the UK have increased at the strongest annual rate since 2002 as consumers splurge on Halloween costumes as well as warm clothing due to cooler weather in October this year. The quantity of goods bought last month increased by 7.4 per cent compared to October 2015, with largest contributions coming from clothing and footwear stores.

The increase in the volume of quantity bought in October 2016 increased by 1.9 per cent compared with September 2016. The average store prices recorded a fall of 0.7 per cent in October 2016 year-on-year in the UK, according to the Retail sales in Great Britain: Oct 2016 statistical study. It was conducted by Office for National Statistics (ONS).

The amount spent in terms of value by the consumers in the country saw a rise of 6.6 per cent compared to October 2015 and of 2.1 per cent compared to September 2016. A rise in the amount spent on e-retail channels also rose by 26.8 per cent in October 2016 compared to the same month last year and by 1.3 per cent compared to September 2016, says the report.

“The strong figures this month have been boosted by several factors. Cooler temperatures in October boosted clothing sales as shoppers took their cue to purchase winter clothing, while the supermarkets benefitted from Halloween. This has also coincided with the strongest growth in internet sales seen for five years,” said Kate Davies, ONS senior statistician.

For every pound spent in the retail industry, 43 pence was spent on non-food stores that include textile, clothing and footwear stores, according to the analysis.

Economists believe that the Brexit vote is likely to have an impact on consumer spending next year. The diminishing value of pound due to Brexit will also cause prices to rise. Slower job growth is also anticipated in the UK, resulting in a decreased in spare incomes of households. (KD)

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