Retail sales slumped last month as hot weather put shoppers off buying autumn clothing
The Office for National Statistics (ONS) said retail sales volumes fell by 0.9 per cent in September against the previous month. It came after a 0.4 per cent increase in August.
The fall was heavier than expected, with analysts having predicted a 0.3 per cent decline for September.
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Hide AdEconomists said clothing and department stores both saw notable declines in trade, as they also highlighted continued pressure on consumers’ budgets due to the rising cost of living.
ONS chief economist Grant Fitzner said: “Retail sales fell notably in September, with retailers telling us that cost-of-living pressures are influencing consumers, particularly for sales of non-essential goods.
“It was a poor month for clothing stores as the warm autumnal conditions reduced sales of colder weather gear.
“However, September’s unseasonable warmth did help drive up food sales a little, and fuel sales rebounded from last month’s fall.”
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Hide AdLast month was the joint-hottest September on record, according to the ONS.
It said this unusual weather, which included a particular hot period at the start of the month, contributed to a 1.9 per cent fall in trade at non-food stores.
Clothing and department stores both reported a 1.6 per cent decline for the month, as sales of new autumn lines including coats, jackets and knitwear, were impacted by the weather.
Meanwhile, the ONS also said it saw a fall in sales at watch and jewellery stores, with retailers linking this to a reduced desire to buy more expensive items in the challenging economic climate.
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Hide AdElsewhere, food sales ticked 0.2 per cent higher for the month, although this reflected a slowdown after a 1.4 per cent rise in August.
Helen Dickinson, chief executive of the British Retail Consortium, said: “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.”
The latest data will be studied very closely by analysts at the Bank of England.
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Hide AdDanni Hewson, head of financial analysis at AJ Bell, said “High streets already have their Christmas lights in place and though they’re not twinkling yet every retailer will be fully focused on the festive season.
“The next three months are the most important of the year for the sector, the time when people splash out on gifts for friends and family, so the fact that consumers tightened their belts in September will undoubtedly be cause for concern.
“Inflation has been falling but everyone is acutely aware that it doesn’t mean prices are falling too, and many people might have had chunky pay increases but that doesn’t mean wallets are suddenly bulging.
“Households are acutely aware of every bill, every penny, and every degree the temperature falls. People are still spending but they’re thinking about their purchases in relation to the bigger picture.
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Hide Ad“Confidence is fragile and falling and the GfK’s latest index shows that bigger picture clearly. Consumers are grappling with higher mortgage and rental costs, concerned about winter energy bills and nervous about the awful situation in the Middle East and the potential it has for destabilising the economy further.”