UK's retail sales in Sept 2023 align with 3-month growth rate: BRC

Non-food sales decreased 1.2 per cent on a total basis over the three-months to September. This is below the 12-month average growth of 0.6 per cent. For the month of September, non-food was in decline year on year (YoY), the BRC said in a press release.

Over the three months to September, in-store non-food sales increased 0.3 per cent on a total basis since September 2022. This is below the 12-month average growth of 3.2 per cent.

Online non-food sales decreased by 3.6 per cent in September, against a decline of 2.6 per cent in September 2022. This was shallower than the 3-month decline of 4.1 per cent and deeper than the 12-month decline of 3.2 per cent.

The proportion of non-food items bought online (penetration rate) decreased to 34.9 per cent in September from 35.1 per cent in September 2022.

Helen Dickinson, chief executive of the BRC, said: “Sales growth in September slowed as the high cost of living continues to bear down on households. The Indian summer also meant sales of autumnal clothing, knitwear, and coats, have yet to materialise.

“With sales volumes down, growth has been artificially boosted by high inflation over the last two years. As inflation eases, so too will longer-term sales growth prospects. The coming months are crucial for retailers as they enter the ‘Golden Quarter’ and they’re investing heavily to support customers and bring prices down. However, such efforts are challenged by the £400 million increase in business rates expected next year. The chancellor should scrap the rates rise in his upcoming budget and enable retailers to deliver more value for customers at such a critical time for the economy.”

Paul Martin, UK head of retail, KPMG, said: “Retail sales continued to limp along, with growth up just 2.7 per cent despite inflation falling in September. 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. 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. Consumers will continue to seek out good deals, with price driving purchasing decisions. This is likely to be one of the most important golden quarters that we have seen in years, as for some in the sector, it could very much determine their future.”

Fibre2Fashion News Desk (NB)