Retail sales rose by 0.3 percent in September and increased 3.6 percent by value and 4 percent by volume. Three industry leaders comment on the latest figures:
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 percent 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.”
Deann Evans, Managing Director, EMEA at global commerce platform Shopify commented: “After a challenging year for the retail sector, the industry will be pleased to see official figures revealing sustained growth in September. While this data signals hope for retailers, our Holiday Retail Report data shows increased spending is unlikely to be frivolous: savvy shopping is still the order of the day with 83 percent of Brits comparing prices in order to find the best discounts and 65 percent planning to shop during sales to save money. As a result, brands must create an impactful retail experience and tap into consumer intentions and emotions.
“In regard to what consumers are spending on, our data shows autumn and winter preparation is high on the agenda for UK shoppers in September, with sales of coats and jackets up by 63.7 percent, food warmers up by 69 percent and leaf blowers up by 34.8 percent. Conversely, picnic blankets and outdoor chairs fell by 70.5 percent and 68.1 percent, respectively. Furthermore, consumer attention has shifted noticeably towards holiday retail across both Halloween (fireworks and firecrackers sales increasing by a massive 426.3 percent) and Christmas (advent calendars up 212.1 percent and holiday ornaments up 86.6 percent).”
Oliver Vernon-Harcourt, head of retail at Deloitte, said: “A back-to-school boost saw retail sales rise for a third consecutive month, with sales of computers and additional clothing and footwear bolstering growth. While many consumers continue to hold back on purchasing big ticket items, the sale of smaller non-essential luxuries has propped up sales values.
“Consumer confidence continues to improve, now returning to pre-pandemic levels for the first time. While discretionary spending has seen improvement in the last quarter, with some consumers allowing budget for little treats and summer holidays, challenges remain. Some consumers are spending more, but retailers remain cautious in the sector’s most crucial few months of the year.
“The Autumn Budget will be weighing on the minds of both consumers and retailers, with the outcome highly anticipated as we head closer to Christmas. These announcements by the Chancellor, along with potential further interest rate cuts, will influence the mood of consumers and whether they spend more in the coming months.”
