Sales figures are not adjusted for inflation. Given that both the
September SPI (BRC) and August CPI (ONS) show inflation running
at higher than normal levels, the rise in sales masked a likely
drop in volumes once inflation is accounted for. Like-for-like
data has been moved from the bullets to the tables at the bottom.
Covering the five weeks 27 August – 30 September
2023
-
UK Total retail sales
increased by 2.7% in September, against a growth of 2.2% in
September 2022. This was in line with the 3-month average
growth of 2.7% and below the 12-month average growth of
4.2%.
-
Food sales increased 7.4% on a Total basis
over the three months to September. This is below the 12-month
average growth of 8.4%. For the month of September, Food was in
growth year-on-year.
-
Non-Food sales decreased 1.2% on a Total basis
over the three-months to September. This is below the 12-month
average growth of 0.6%. For the month of September, Non-Food
was in decline year-on-year.
- Over the three months to September, In-store Non-Food
sales increased 0.3% on a Total basis since September
2022. This is below the 12-month average growth of 3.2%.
-
Online Non-Food sales decreased by 3.6% in
September, against a decline of 2.6% in September 2022. This
was shallower than the 3-month decline of 4.1% and deeper than
the 12-month decline of 3.2%.
- The proportion of Non-Food items bought online (penetration
rate) decreased to 34.9% in September from 35.1% in September
2022.
Helen Dickinson OBE, Chief Executive
of the British Retail Consortium, 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.
The Indian summer also meant sales of autumnal clothing, knitwear
and coats, have yet to materialise.
“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. The coming months
are crucial for retailers as they enter the “Golden Quarter” and
they’re investing heavily to support customers and bring prices
down. However, such efforts are challenged by the £400m increase
in business rates expected next year. The Chancellor should scrap
the rates rise in his upcoming Budget and enable retailers to
deliver more value for customers at such a critical time for the
economy.”
, UK Head of Retail,
KPMG
“Retail sales continued to limp along, with growth up just 2.7%
despite inflation falling in September.
“Food and drink, and health and beauty continue to be the
strongest performing categories on the high street, whilst a
growing number of categories including clothing, fell into
negative territory over September as the unseasonal warm weather
delayed trips to the shops to stock up on winter wardrobe
purchases. Online sales growth continued to fall, with just
health, beauty and jewellery recording positive sales growth.
September signals the 26th month of continuous online sales
decline and retailers will be hoping for a strong Black Friday in
order to turn the tide.
“With the warmer weather delaying household heating being
switched on, positive news around falling inflation and a hold on
rising interest rates, consumers will hopefully be feeling a bit
more confident as thoughts turn to Christmas shopping.
“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.”
Food & Drink sector performance | Sarah Bradbury,
CEO, IGD
“Food and drink sales grew in September, continuing the positive
momentum seen in August. Despite falling consistently for several
months, inflation is still significantly higher than recent
historical standards, and volumes remain down year-on-year.
Retailers are doing what they can to limit the impact of
inflation on shoppers, with many announcing further rounds of
price cuts and price freezes.
“Shopper confidence reached its highest level since December 2021
in September, as fewer shoppers felt they would be financially
worse off in the year ahead (35% vs 38% last month and 60% in
Sep’22). Trust in the food industry around price, availability
and quality rose as well, reflecting a general uplift in mood
with warm weather and falling inflation. However, 68% of shoppers
still expect food prices to rise in the next 12 months – with 16%
expecting them to become much more expensive.”
-ENDS-
