In the lead-up to the new school year, UK families are increasingly turning to second-hand options, marking a notable shift in consumer behavior.
- Non-food sales in the UK fell by 1.7% over the three-month period ending August 24, compared to the previous year.
- Significant declines were observed in high street non-food sales, while online sales showed a modest rebound.
- Technological purchases, particularly computers and laptops, saw an uptick as university students prepared for their studies.
- Retailers remain hopeful yet cautious, as pending economic policies could impact future sales dynamics.
UK families have increasingly opted to purchase second-hand goods, significantly impacting non-food sales. Recent data reveals a 1.7% decline in non-food sales over three months compared to the previous year, as reported by the British Retail Consortium (BRC) and KPMG International. This decline is above the average annual drop of 2%, with comparisons to a slight 0.2% decrease the year prior.
High street sales particularly suffered, with in-store non-food sales dropping 2.8% year-on-year, contrasting with a 1.3% growth in August of the previous year. Conversely, online non-food sales experienced a resurgence, increasing by 1.5% year-on-year in August, which notably surpassed the average decline of 1.7% recorded in August the preceding year. This online growth was above the three-month average growth of 0.3% and outperformed the annual decline of 1.8%.
During the back-to-school timeframe, technology sales, such as computers and laptops, saw a rise among incoming university students, providing a glimmer of growth in an otherwise subdued market. However, other categories related to the back-to-school season, including clothing and footwear, underperformed, as noted by BRC’s chief executive, Helen Dickinson: “Families are increasingly opting for second-hand purchases in these categories.“
Linda Ellett from KPMG highlighted a positive trend in sports and travel equipment, which enjoyed increased demand during the summer period. She remarked that clothing sales experienced a second consecutive month of growth on the high street, though the anticipation is tentative as retailers aim to clear surplus summer inventory ahead of the autumn season. Ellett also pointed out the cautious consumer sentiment that prevails amid concerns of potential tax increases.
The impending Autumn Statement, scheduled for October 19, presents an opportunity to address longstanding issues such as the business rates system, which is perceived to be restricting investment potential. As Helen Dickinson articulated, “Decisive action will benefit working people across the country.” The outcome of this statement is awaited by many retailers as they plan future investment strategies in light of potential shifts in consumer spending patterns, especially with rising energy costs on the horizon.
The evolving shopping behaviors and economic factors present challenges and opportunities for retailers as the new school year begins.
