Retailer firms suffer subdued October as shoppers hold back for Black Friday
Retailers suffered a subdued October as shoppers delayed spending ahead of Black Friday and Christmas, figures show.
Total UK retail sales increased by 1.5 per cent year on year, although this was above the three-month average growth of 1.2 per cent, according to the British Retail Consortium (BRC) and KPMG.
Food sales were up 3.2 per cent, down from last October’s figure of 3.5 per cent but also above the 12-month average growth of three per cent, helped by cupboard staples seeing a modest boost following Government advice for households to stock for emergencies.
Halloween falling on a Saturday also helped drive spending on snacks, costumes and decorations.
Non-food sales were flat, with big ticket categories such as furniture and white goods performing badly as customers waited for November and its Black Friday deals.
BRC chief executive Helen Dickinson said: “Retailers are hoping pent-up demand translates into stronger spending through November and December, as they work hard to deliver great choice and value for households this Christmas.
“But shoppers and businesses face mounting costs, including rising interest rates and energy bills, adding to the pressures already pushing up prices.
“Government must move faster to cut back the taxes and regulations making it harder for retailers to keep prices down.”
Linda Ellett, UK head of consumer, retail and leisure markets at KPMG, said: “Clothing and footwear purchases grew in October, along with cosy essentials like duvets, as temperatures lowered and storms finally blew in the start of autumn and winter season for retailers.
“But with consumers facing higher household costs, caution ahead of the Budget, and some waiting for Black Friday deals, overall sales growth was modest.
“Nonetheless, growth will be welcomed by a retail sector that desperately needs to offset cost increases with some strong sales as the promotional and festive season gets into full swing.”
Separate figures from Barclays suggest retail spending grew just 0.5 per cent in October as shoppers made more purchases in some categories but spent less overall.
Clothing transactions rose 5.2 per cent while spending fell 1.8 per cent, pointing to more frequent but lower-value purchases, according to the bank’s data.
It found consumer card spending grew 2.3 per cent year on year in October, up from 2 per cent in September and the highest growth since July last year.
Essential spending rose 3.1 per cent, up from 2.5 per cent, as fuel spending climbed 22.7 per cent after diesel passed £2 a litre for the first time.
Non-essential spending grew 1.9 per cent, up slightly from 1.8 per cent, with entertainment performing strongly.