Retail sales in October have shown a significant decline, raising concerns among economists and retailers.
- Figures from the Office for National Statistics indicate a 0.7% overall drop in retail sales for the month.
- Sales volumes at non-food stores fell by 1.4% in October, highlighting consumer hesitance.
- Textile, clothing, and footwear sectors experienced a notable 3.1% decrease in sales.
- Experts point to budget uncertainty as a key factor affecting consumer spending habits.
In October, retail sales witnessed a decline of 0.7%, according to the Office for National Statistics. This drop followed a marginal 0.1% increase in September, which was later revised down from a previously reported 0.3%. The drop in sales comes during a period marked by economic instability and uncertainty surrounding the government’s budget plans.
The non-food retail sector saw a more pronounced fall, with sales volumes decreasing by 1.4% in the month of October. This decline was particularly observed in sectors such as textiles, clothing, and footwear, which faced a significant 3.1% reduction in sales figures. This downturn followed a period of growth over the previous three months, attributed to end-of-season promotions and favourable weather conditions.
The overall sales volumes did show a 0.8% increase when comparing the three months leading to October with the previous quarter ending in July. Despite this broader positive trend, the recent monthly figures indicate a shift in consumer confidence and spending behaviour, likely influenced by the unpredictability of the budget.
Oliver Vernon-Harcourt, head of retail at Deloitte, commented on the situation, noting a disconnect between consumer confidence and spending. He emphasised that retailers now face the challenge of encouraging spending by providing excellent value and creating compelling shopping experiences, both online and in stores, particularly during the crucial festive trading period.
Retailers face a challenging environment as budget uncertainties dampen consumer spending, urging them to adapt strategies.
