Retail sales growth in the UK experienced a notable decline in October, with industry data indicating that consumers delayed spending in anticipation of Black Friday deals and due to a later school half-term break.
The British Retail Consortium (BRC) reported a year-on-year increase in total sales of just 0.6% for October, a significant slowdown compared to September and less than half the three-month average growth rate.
The fashion sector bore the brunt of this downturn, as unseasonably mild weather discouraged shoppers from purchasing winter clothing.
Industry experts also noted that many consumers were holding back on purchases in preparation for the upcoming US-inspired Black Friday sales.
A contributing factor to the subdued sales was the shift in the October half-term break for many families in England compared to 2023.
Retail activity typically rises during school holidays, and the BRC expects these effects to be reflected in its November sales data.
Helen Dickinson, Chief Executive of the BRC, commented on the challenging environment: “After a good start to autumn, October’s sales growth was disappointing.”
She added that consumer concerns over the upcoming budget and rising energy costs had “spooked” shoppers and led to caution in spending.
The BRC figures showed a 2.9% increase in food sales over the three months to October, which paled in comparison to the 7.9% growth recorded in the same period in 2023.
In contrast, non-food sales dipped by 0.1%, with reduced spending on items such as toys, baby equipment, clothing, and furniture.
Separate data from Barclays painted a similar picture of sluggish consumer spending.
Despite a marked improvement in consumer confidence as households felt more positive about their financial situation and the UK’s economic outlook, overall spending remained subdued.
Barclays, which handles nearly 40% of the nation’s credit and debit card transactions, reported that consumer card spending grew by just 0.7% year-on-year, down from a 1.2% rise in September.
This growth was bolstered by non-essential spending, particularly in entertainment, with ticket sales for Coldplay’s world tour and digital streaming services seeing notable gains.
Barclays’ survey, conducted by Opinium with 2,000 participants, revealed that 37% of shoppers were planning to make purchases during Black Friday, and nearly a third had already placed items in online shopping baskets to track potential price drops.
However, essential spending, including grocery purchases, fell by 2.2% compared to the previous year – the steepest decline since April 2020, when the first full lockdown at the onset of the Covid pandemic caused widespread economic disruption.
