Retail Sales Growth in the UK Slows Down

According to the British Retail Consortium and KPMG, retail sales growth in the United Kingdom slowed in October as consumers opened their wallets due to rising energy bills and pre-budget uncertainty.

Retail sales in the UK increased by 0.6% year-on-year in October, falling short of the three-month average growth of 1.3% and the 12-month average increase of 1.0%. Sales had risen by 2.6% year-on-year in October 2023.

Helen Dickinson, an analyst at the British Retail Consortium, stated, "After a good start to autumn, the sales growth in October was disappointing. This was partly due to the half-term holiday falling a week later this year, negatively impacting October's figures; November sales are likely to show a further increase. Pre-budget uncertainty and rising energy bills have also unsettled some consumers. The mild weather has delayed winter shopping, hitting fashion sales the hardest. Sales in health and beauty remained strong, with beauty calendars flying off the shelves."

Food sales increased by 2.9% year-on-year in the three months leading up to October, down from a 7.9% increase the previous year. This growth fell short of the 12-month average increase of 4.1%. Non-food sales decreased by 0.1% in the same three-month period; however, this was an improvement compared to the 1.0% decline recorded in the previous year. It was also better than the 12-month average decline of 1.6%. In the three months leading up to October, in-store non-food sales decreased by 1.2% year-on-year, while online non-food sales increased by 0.4%.