Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
UK retail sales growth fell short of recent standards in October, numbers from the British Retail Consortium showed Tuesday.
According to the latest BRC-KPMG tracker, retail sales increased 2.5% on-year last month, picking up speed from a 1.6% rise in October 2022, but shy of the three-month average rise of 3.1%.
Food sales increased 7.9% in the three months to October, below the 12-month average rise of 8.5%. Non-Food sales decreased 1.0%, falling short of the 12-month average climb of 0.6%.
BRC Chief Executive Helen Dickinson commented: ‘Retail sales growth slowed as high mortgage and rental costs further shook consumer confidence. Many households are also delaying their Christmas spending in the hopes they can grab a bargain in the upcoming Black Friday sales. The cost-of-living squeeze meant more was spent on lower-price indulgences, such as beauty products the so-called ’Lipstick Effect’. Meanwhile, the arrival of some colder weather helped to boost fashion sales, particularly for outdoor wear.
‘Whilst consumers are now operating in a lower inflationary environment compared to October last year where inflation peaked at over 11%, there is no doubt that the last 12 months have taken a toll on confidence and their ability to spend. Coupled with a higher interest rate environment, dwindling Covid savings and the heating coming back on, beleaguered consumers are thinking very carefully about how they spend their money. As a result, the strong demand that has kept some retailers afloat over the last 18 months is now falling away.’
Copyright 2023 Alliance News Ltd. All Rights Reserved.