Retail Sales See Strongest Growth In Six Months

The BRC and KPMG have published retail sales data covering the five weeks from 25th August to 28th September 2024.

• UK Total retail sales increased by 2.0% year on year in September, against a growth of 2.7% in September 2023. This was above the 3-month average growth of 1.2% and the 12-month average growth of 1.1%.
  
  
• Food sales increased 3.1% year on year over the three months to September, against a growth of 7.4% in September 2023. This is below the 12-month average growth of 4.4%. For the month of Sep, Food was in growth year-on-year.
  
  
• Non-Food sales decreased 0.3% year on year over the three-months to September, against a decline of 1.2% in September 2023. This is above the 12-month average decline of 1.7%. For the month of September, Non-Food was in growth year-on-year.
  
  
• In-store Non-Food sales over the three months to September decreased 1.5% year on year, against a growth of 0.3% in September 2023. This is above the 12-month average decline of 1.9%.
  
  
• Online Non-Food sales increased by 3.4% year on year in September, against an average decline of 3.6% in September 2023. This was above the 3-month average increase of 1.9% and above the 12-month average decline of 1.1%.
  
  
• The online penetration rate (the proportion of Non-Food items bought online) increased to 35.6% in September from 35.1% in September 2023. This was below the 12-month average of 36.4%.

Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said:
“Retail sales saw the strongest growth in six months as non-food performed better than expected. As Autumn rolled out across the UK, shoppers sought to update their wardrobes with coats, boots and knitwear. The start of the month also saw a last-minute rush for computers and clothing for the new academic year. Ongoing concerns of consumers about the financial outlook kept demand low for big ticket items such as furniture and white goods.

“The coming months are crucial for the economy as retailers enter the “Golden Quarter”. But in the face of weak consumer confidence and the continued high burden of business rates, retailers’ capacity for further investment is limited. As a result, retailers are holding their breath ahead of the Budget as they work out their investment strategies for the coming year. Decisive action from the Chancellor, such as introducing a 20% Retail Rates Corrector, would help to drive investment and economic growth up and down the country.”

Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, said:
“September saw modest, but welcome, sales growth for retailers.  Children’s clothing, footwear and accessories saw a boost from the start of the school year, with household budgets feeling slightly less constrained for some parents compared to last year.  Similarly, the return to work after summer holidays also led to an upturn in adult clothing and footwear sales.  With record rainfall levels in some counties, the cold and wet weather in September sped up purchases of extra layers and wet weather gear.

“With energy prices having again risen, all eyes now turn to the Budget and what impact that will have on household discretionary spending in the final quarter of the year.”

Food & Drink sector performance | Sarah Bradbury, CEO, IGD, said:
“Shopper confidence remained stable in September after a summer buoyed by sport. As shoppers turn their focus to the upcoming winter months, news of a difficult Autumn Budget and rising energy prices will likely cause a downturn in confidence with cost-of-living concerns remaining front and centre in shoppers’ minds.

“Growth in the grocery retail market slackened with the arrival of autumn. September's sales were still ahead year-on-year, but the pace of increase was down versus August, no doubt depressed by the wet weather as well as cautionary economic messages from the government. 

“With the golden quarter just beginning, retailers have been implementing seasonal ranging earlier than ever, determined to make the most of the coming key trading period.”

Source : BRC

Image : William Barton / shutterstock.com / 1137631598 

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