UK retail sales rose by 2% in September 2024, surpassing the three-month and 12-month growth averages.
- Clothing and footwear significantly contributed to this increase as consumers prepared for autumn and the new academic year.
- Non-food sales overall showed growth, despite mixed results in online and in-store performances.
- Retailers faced challenges with weak consumer confidence and high business rates affecting investment capacities.
- The retail sector anticipates crucial upcoming months with hopes for supportive fiscal measures from the government.
UK retail sales experienced a 2% increase in September 2024, a notable rise compared to both the three-month average of 1.2% and the 12-month average of 1.1%, according to data from the British Retail Consortium (BRC) and KPMG. This growth was primarily driven by consumer spending in clothing and footwear as the autumn season commenced.
Shoppers actively sought to update their wardrobes with seasonal essentials such as coats, boots, and knitwear, aligning with the arrival of autumn across the UK. This also coincided with a last-minute rush for academic supplies, including computers and school clothing for the new academic term, contributing further to the retail growth.
The report indicated mixed trends within the non-food sector. While overall non-food sales were in growth year on year, in-store non-food sales dropped by 1.5% compared to the previous year. In contrast, online non-food sales marked a significant increase of 3.4% year on year in September, reversing a previous decline of 3.6% in the same period last year.
Despite this positive sales growth, retailers remain cautious due to weak consumer confidence and the ongoing challenge of high business rates, which limit their ability to invest further. The sector is keenly awaiting the government’s next budget, with the potential introduction of a 20% retail rates corrector being viewed as a necessary stimulus for further economic growth across the region.
KPMG’s Linda Ellett noted the overall modest yet encouraging sales growth, with particular increases observed in children’s clothing, footwear, and accessories, linked to the beginning of the school year. Additionally, the return to work after summer holidays drove increased sales in adult clothing and footwear. Adverse weather conditions, including record rainfall levels, accelerated the purchase of warmer clothing and wet-weather gear in certain regions.
Retailers are now looking towards the ‘Golden Quarter’ with strategic anticipation, hoping for supportive government policies to boost investment.
