ONS: Retail Sales Saw Growth In September

The ONS has published retail sales data for September 2024, covering the period 25 August 2024 to 28 September 2024.

Key points:

• Sales volumes rose by 0.3% during September 2024 following a 1.0% rise in August 2024. In September, sales volumes were at their highest index levels since July 2022. During the year to September 2024, sales volumes rose by 3.9%, the largest annual rise since February 2022.
  
  
• When compared with their pre-coronavirus (COVID-19) pandemic level in February 2020, volumes were down by 0.2%.

• More broadly, there was a 1.9% rise during the period from July to September 2024 (Quarter 3) when compared with the three months to June 2024 (Quarter 2), the joint largest, shared with March 2024, since July 2021. This quarterly rise was across all main sectors. When comparing with the same period last year, there was a 2.6% rise, the largest since March 2022.
  
  

• Non-food stores sales volumes – the total of department, clothing, household and other non-food stores – rose by 2.5% in September 2024, following a rise of 0.6% in August.
  Partly offsetting this, supermarkets sales volumes fell by 2.4% during the month to September 2024, leading to the largest month-on-month fall for food stores this year. Comments from retailers pointed to unseasonably poor weather and consumers continuing to cut back on luxury food items.

• The strongest sub-sector growth was from other non-food stores, which rose by 5.5% over the month to September 2024. Within “other non-food”, computer and telecommunications retailers had the strongest contribution to growth. 

• Partly offsetting this, supermarkets sales volumes fell by 2.4% during the month to September 2024, leading to the largest month-on-month fall for food stores this year. Comments from retailers pointed to unseasonably poor weather and consumers continuing to cut back on luxury food items. 

• The amount spent online, known as “online spending values”, rose by 1.3% during September 2024, and by 6.7% compared with September 2023.
  
  
• Total spend – the sum of in-store and online sales – rose by 0.1% over the month. As a result, the proportion of sales made online increased from 27.5% in August 2024 (revised down from 27.6%) to 27.7% in September 2024.

BRC Commentary:

Responding to the latest ONS Retail Sales Index figures, which showed sales up 3.6% by value, and up 4.0% by volume, Kris Hamer, Director of Insight at the British Retail Consortium, said:

“September saw the strongest retail sales growth since January, and the highest sales volume since March 2022. This was thanks to areas such as clothing and computing performing particularly well, as autumn led people to upgrade their wardrobe as well as the last minute student dash for new computers as the new academic year began. Big ticket items, such as furniture and other household goods continued to take the hit from some consumers, such as those saving for Christmas or preferring to spend their money on experiences.” 

“While the growth in sales is welcome, retailers are nervously waiting for the Budget to see if they are going to be whacked by more costs, particularly trailed changes to Employer National Insurance contributions, as well as the inflationary increase to business rates coming next year. These changes would add more pressure to an industry that already pays far more than its fair share in business taxes. The Chancellor should use the Budget to level the playing field with other parts of the economy, introducing a Retail Rates Corrector, a 20% downwards adjustment to the business rates bills of all retail properties. This would help drive investment and economic growth, supporting jobs, shops, high streets and communities.”

Source : ONS, BRC

Image : William Barton / Shutterstock / 1184182105

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