UK Retail Sales Witness Slow Growth in October
Anticipation for Black Friday and Shifted School Holidays Cited as Key Factors
UK retail sales growth experienced a slowdown in October, with shoppers postponing spending in anticipation of Black Friday deals and due to the October half-term holidays occurring later than usual.
The British Retail Consortium (BRC) reported a modest annual rise in total sales of 0.6% for October, which was notably weaker than September and below the three-month average growth rate.
The fashion sector was notably impacted, as milder weather reduced winter clothing purchases.
BRC CEO Helen Dickinson attributed part of the sales dip to consumer concerns over the upcoming budget and increased energy costs.
Food sales saw a 2.9% increase over the year leading up to October, compared to 7.9% growth in the same period in 2023, while non-food sales decreased by 0.1%.
Adding to the evidence of cautious consumer behavior, Barclays reported a 0.7% growth in card spending year-on-year in October, down from a 1.2% increase in September.
A survey indicated that 37% of consumers planned to shop during Black Friday, with many already setting aside items online in anticipation of discounts.
Essential spending dropped significantly by 2.2%, marking the steepest decline since April 2020, during the Covid lockdown.
Despite nervousness about potential tax hikes from the recent budget announcement, there is hope for recovery in consumer spending with clearer fiscal policies now in place.
Retailers are optimistic about renewed consumer confidence with the Black Friday shopping period viewed as a critical indicator of post-budget consumer sentiment.
The British Retail Consortium (BRC) reported a modest annual rise in total sales of 0.6% for October, which was notably weaker than September and below the three-month average growth rate.
The fashion sector was notably impacted, as milder weather reduced winter clothing purchases.
BRC CEO Helen Dickinson attributed part of the sales dip to consumer concerns over the upcoming budget and increased energy costs.
Food sales saw a 2.9% increase over the year leading up to October, compared to 7.9% growth in the same period in 2023, while non-food sales decreased by 0.1%.
Adding to the evidence of cautious consumer behavior, Barclays reported a 0.7% growth in card spending year-on-year in October, down from a 1.2% increase in September.
A survey indicated that 37% of consumers planned to shop during Black Friday, with many already setting aside items online in anticipation of discounts.
Essential spending dropped significantly by 2.2%, marking the steepest decline since April 2020, during the Covid lockdown.
Despite nervousness about potential tax hikes from the recent budget announcement, there is hope for recovery in consumer spending with clearer fiscal policies now in place.
Retailers are optimistic about renewed consumer confidence with the Black Friday shopping period viewed as a critical indicator of post-budget consumer sentiment.
