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The recovery of retail sales slowed in October, as on a total basis, retail sales increased by 1.6%, against an increase of 1.3% in the same month last year. This is also below the three-month average of 1.7% and the 12-month average growth of 2.7%, according to the British Retail Consortium (BRC).
According to the BRC with assistance from KPMG’s Retail Sales Monitor, it reports that the UK’s retail sales saw a 1.2% year-on-year rise in October, a 0.2% rise from October last year.
In addition, non-food retail sales fell 1.2% on a total basis, which is 3.7% below the 12-month total average growth. Equally, online non-food sales also decreased by 6.3% in October, which is below the 12-month decline of 13.6%.
According to research by Retail Economics and Hot UKDeals, spending during Black Friday is expected to drop 15% compared with previous years to just £1.7bn.
This comes as 59% of UK consumers will have less money to spend on gifts this Christmas amid the cost-of-living increase, according to a survey conducted by Deloitte.
Helen Dickinson, CEO of the BRC, said: “As the cost of living for consumers continued to rise, retail sales slowed in October. With November Black Friday sales just around the corner, many people look to be delaying spending, particularly on bigger purchases.
“Christmas will come later than last year for many and may be more gloom than glitter as families focus on making ends meet, particularly as mortgage payments rise. Retailers hope the World Cup and Black Friday will give sales a much-needed boost ahead of Christmas.”
She added: “Retailers face an additional government imposed £800m inflationary increase in their business rates bills next year so the government should freeze rates and reform the broken transitional relief system to alleviate cost pressures that are feeding through to higher prices at a time when people are least able to afford them.”
