In September 2024, UK retail sales experienced a notable boost driven primarily by clothing and footwear despite a backdrop of economic challenges.
- Retail sales in the UK increased by 2% in September, surpassing the three-month and 12-month average growth rates.
- Non-food sales showed a surprising year-on-year growth in September, despite recent declines.
- A rise in online non-food sales was observed, contrasting previous downward trends.
- Retailers face economic uncertainties and await government decisions on business rates.
In a welcome development, UK retail sales rose by 2% in September. This performance exceeded both the three-month average growth of 1.2% and the 12-month average of 1.1%. Such gains are significant given the economic challenges facing retailers, which may impact future strategies.
The non-food sector, despite a broader trend of decline, experienced growth during September. Online non-food sales, in particular, saw a 3.4% increase year on year, reversing an average decline of 3.6% from the previous year. This unexpected uptick highlights a shift in consumer purchasing behaviors, favoring the convenience and safety of online shopping.
Helen Dickinson, chief executive of the British Retail Consortium, attributed part of this growth to seasonal changes in consumer behavior. “As autumn rolled out across the UK, shoppers sought to update their wardrobes with coats, boots, and knitwear.” Additionally, the onset of the academic year contributed to a last-minute rush for essential clothing and equipment purchases, supporting the surge in retail figures.
The economic landscape remains precarious, with retailers approaching the crucial ‘Golden Quarter’. Linda Ellett from KPMG noted, “September saw modest, but welcome, sales growth for retailers.” She pointed out that household budgets felt slightly less squeezed, enabling parents to allocate more towards children’s clothing and accessories. The wet weather further spurred purchases of warmer, weather-appropriate apparel.
Retailers, however, continue to navigate significant hurdles, particularly concerning business rates. Many await decisive action from governmental bodies that could alleviate the financial pressures they face. Helen Dickinson emphasized the need for policies such as a ‘20% retail rates corrector,’ which could catalyze further investment and growth across the country.
The UK’s September retail results provide a glimmer of hope amid economic uncertainties, underscoring the vital role of strategic consumer shifts and potential policy adjustments.
