In October, UK retail sales witnessed a decline, breaking a three-month streak of growth, influenced by budget uncertainties and warm weather effects.
- October sales figures fell by 0.7% after a modest increase of 0.1% in September.
- Non-food store revenues saw a decrease of 1.4%, contrary to September’s rise.
- Clothing store sales particularly suffered, dropping 3.1%, attributed to unseasonably high temperatures.
- Food stores and online sales also experienced minor declines, pointing to broader consumer hesitancy.
In a surprising shift, UK retail sales fell by 0.7% in October, halting a gradual three-month recovery. The Office for National Statistics (ONS) attributed this drop to uncertainties surrounding the budget and unseasonably warm weather, which discouraged expected consumer spending.
Despite a slight increase in sales of 0.1% in September, non-food store revenues fell sharply by 1.4% in October. This downturn contrasts with a 2.3% increase the previous month, highlighting fluctuations in consumer purchasing behaviors.
Clothing stores in particular faced challenges, recording a 3.1% drop in sales. The unseasonably warm temperatures in October led to reduced demand for seasonal clothing, affecting overall sales in this sector significantly.
Food and online sales also contributed to the downward trend, albeit marginally. Food store revenues declined by 0.6%, while online sales decreased by 1.2%, with non-food retailers experiencing the greatest impact.
ONS senior statistician Hannah Finselbach noted, “When we look at the wider trend, retail sales are increasing across the three-month and annual periods, although they remain below pre-pandemic levels.” This statement provides context for the ongoing recovery efforts in the retail sector.
Lisa Hooker, PwC’s leader of industry for consumer markets, commented on the negative consumer sentiment and its impact ahead of budget announcements. She mentioned that early Christmas shopping might mitigate some of the effects, although the timing was less than ideal for the industry’s critical sales period.
The recent drop in retail sales reflects ongoing economic uncertainties, signaling potential challenges ahead for the UK’s retail sector.
