UK retail sales growth slows to 2.7% in September

UK total retail sales growth slowed to 2.7% in September, compared to 2.2% in September 2022, according to the BRC. 

Food sales increased 7.4% over the three months to September, a figure below the 12-month average growth of 8.4%. 

Non-food sales decreased 1.2% over the three-months to September, making them below the 12-month average growth of 0.6%. In-store non-food sales increased 0.3%, below the 12-month average growth of 3.2%, while online non-food sales decreased by 3.6%, against a decline of 2.6% in September 2022.

Helen Dickinson OBE, chief executive of the BRC, said: “Sales growth in September slowed as the high cost of living continues to bear down on households. Big ticket items such as furniture and electricals performed poorly as consumers limited spending in the face of higher housing, rental and fuel costs. 

“With sales volumes down, growth has been artificially boosted by high inflation over the last two years. As inflation eases, so too will longer-term sales growth prospects.” 

Paul Martin, UK head of retail, KPMG, said: “After years of battling challenges, the resilience of the retail sector has been dented and we are starting to see the gap between the strongest and the weakest on the high street widen. The fight for Christmas shoppers will be fierce this year, with promotions likely to be earlier and abundant in a bid to loosen tight household purse strings. 

“Consumers will continue to seek out good deals, with price driving purchasing decisions. This is likely to be one of the most important golden quarters that we have seen in years, as for some in the sector, it could very much determine their future.”