'Shoppers seem to be cautiously spending more': UK retailers deliver growth
Sales at UK retailers increased for the fourth consecutive month as the release of the iPhone 17 boosted tech sales, according to official figures.
The retail sector was also buoyed by strong demand for gold at online jewellers. The Office for National Statistics (ONS) said the total volume of retail sales is estimated to have risen by 0.5 per cent in September. It said this followed a 0.6 per cent increase, which had been revised higher by the ONS.
The latest reading was a surprise increase after analysts predicted a decline of 0.2 per cent for the month.
The figures are a positive signal in the face of concerns over a potential cooling in the UK economy. It highlighted that retail sales volumes improved to their highest total level since July 2022, strengthened by online retailers. Non-store retail volumes, which predominantly covers online firms, rose by 1.5 per cent for the month to strike the highest level since February 2022.
It said that online jewellers helped contribute to the increase, as brands reported a “strong demand for gold” amid a continued rise in gold prices in recent months.
Elsewhere, computer and telecommunications retailers saw stronger growth in September. This category was boosted by product launches, including the new iPhone 17 which went on sale in September. But food stores and department stores reported a drop in volumes over the month.
Kien Tan, senior retail adviser at PwC UK, said “shoppers still seem to be cautiously spending more” despite signs of pressure on consumer sentiment.
He added: “The autumnal weather certainly helped fashion sales, with clothing retailers continuing their run of outperformance and encouraging shoppers to refresh their wardrobes with the newest season trends.
"However, autumn showers also discouraged shoppers from visiting physical stores, as high street footfall fell and the proportion of sales online increased to 28 per cent, which is the highest penetration of online retail since the end of the pandemic.”