18 October 2024
The latest ONS figures show retail sales volumes increased by 0.3% in September, driven by a 5.5% increase in other stores (including computing and telecommunications), department stores (up 1.9%) and household goods (up 0.5%). However, food sales fell 1.9% last month.
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, comments: “The Autumn/Winter wardrobe refresh and back-to-school rush propped up retail sales in September delivering a post-summer boost, despite record-breaking rainfall and a sharp drop in consumer confidence in September.
“A fall of 1.9% in food sales dragged down the average in retail sales growth as the bad weather and consumers cutting back on luxury food items held back spending.
“As we enter the all-important Golden Quarter, retailers will be doing their best to pull out all the stops to ensure retail sales continue to pick up pace during this crucial period, particularly as competition for spend increases in the lead up to Christmas. However, this is largely dependent on consumers feeling more confident to spend, and with talks of a “painful” Autumn Budget many will undoubtedly be feeling nervous about what’s to come on 30 October.
“Retailers too, are in need of clarity and support from the government. While business rates reform continues to be their number one plea, the prospect of an increase in workforce-related costs will be crippling news for many. The sector remains optimistic about the outlook for 2025, but it needs the government’s help to make this a reality.”