UK retail sales growth slows to 2.7% in September
The British Retail Consortium said on Tuesday that UK retail sales growth down slowed in September as households reduced spending on big ticket items.
Food sales posted an annual growth of 7.4 %, while non-food sales were down 1.2 %. Food and drink sales were up by 7.4% in September, continuing the positive momentum seen in August, but still came in 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% as consumers struggled under the weight of higher housing and fuel costs, according to the latest data.
Total UK retail sales increased by 2.7% last month compared to a year ago, in line with the three month average but much weaker than the 12 month average of 4.2%, according to figures from the British Retail Consortium and KPMG. Retail sales advanced 2.7% on a yearly basis compared to an increase of 4.1% in August while sales advanced 2.2% in the same period last year. Consumers limited their spending last month in the face of higher housing, rental and fuel costs, the analysis found.
In-store non-food sales gained 0.3 % and online non-food sales decreased 3.6 % in September, data showed.
The proportion of non-food items bought online decreased to 34.9 % in September from 35.1 % last year.
Big ticket items such as furniture and electricals performed particularly poorly as consumers cut back on large purchases and limited spending in the face of higher housing, rental and fuel costs. Food, drink, health and beauty continue to be the strongest performing categories on the high street.
Online sales growth continued to fall, with only health, beauty and jewellery recording positive sales growth.
September signals the 26th month of consecutive online sales decline and retailers will be hoping for a strong Black Friday so as to turn the tide.
