September witnessed a significant uplift in retail sales, driven by preparations for the autumn season and new academic year.
- The British Retail Consortium reported a 2% increase in total sales for September, surpassing the 12-month average growth of 1.1%.
- Food sales experienced a notable rise, although they remain below last year’s figures and the 12-month average.
- A downward trend in non-food sales was observed, despite a positive shift in online non-food retailing.
- Industry leaders highlight the potential challenges and opportunities as the festive season approaches.
Retail sales in September saw a notable increase as consumers geared up for the new autumn season and the academic year. The British Retail Consortium (BRC) recorded a total sales growth of 2% for September, which outpaces the 12-month average growth rate of 1.1%. This growth follows a 2.7% increase in the same period last year, indicating a persistent consumer interest despite economic challenges.
Food sales demonstrated a robust increase of 3.1% year-on-year for the three months leading up to September. However, this growth is still below the 7.4% rise recorded in August 2023 and also trails the 12-month average increase of 4.4%. Such figures suggest a mixed consumer response to food purchases as the market adjusts to evolving economic conditions.
In contrast, non-food sales exhibited a slight decline of 0.3% over the same three-month period. This downturn was partially mitigated by a 3.4% increase in online non-food sales, reflecting a shift in consumer buying habits towards digital platforms. The data highlights the dynamic nature of the retail sector as it navigates changing consumer preferences.
BRC Chief Executive Helen Dickinson remarked, “Retail sales saw the strongest growth in six months as non-food performed better than expected.” The onset of autumn prompted customers to refresh their wardrobes with essential items such as coats, boots, and knitwear. The beginning of September also spurred a rush for computers and clothing in preparation for the academic year. Despite this, concerns over the economic outlook continue to temper demand for substantial purchases like furniture and white goods.
Linda Ellett, Head of Consumer for Retail and Leisure at KPMG UK, observed, “September saw modest, but welcome, sales growth for retailers.” Children’s wear, footwear, and accessories experienced a boost due to back-to-school shopping, with some alleviation in budget constraints from last year. Adult apparel and footwear also benefited from the post-summer return to work. Additionally, the adverse weather conditions, marked by record rainfall, accelerated purchases of additional layers and wet weather apparel.
The retail sector experienced encouraging growth in September, setting a foundational momentum for the upcoming festive season.
