In September, UK retail sales exceeded expectations, primarily driven by a surge in demand for new technology.
- Sales in technology and telecommunications rose significantly, aided by recent product releases like Apple’s iPhone 16.
- Overall retail volumes increased by 0.3% during September, outperforming expectations of a decline.
- Clothing and footwear sales benefited from cooler weather, boosting non-food store sales volumes.
- Demand for big-ticket items declined, reflecting consumer caution around discretionary spending as the festive season approaches.
In September, United Kingdom’s retail sector witnessed an unexpected increase, primarily fuelled by robust demand for new technology. The sales in the technology and telecommunications sectors experienced a substantial boost, with volumes growing by over a third. This surge was significantly supported by the launch of new products, notably the Apple’s iPhone 16.
According to the latest figures from the Office for National Statistics (ONS), the total retail sales volumes saw a 0.3% rise in September. Although this growth was slower compared to the 1% increase observed in August, it still managed to surpass predictions, which speculated a 0.3% decline. Year-on-year, sales volumes jumped by 3.9%, marking the largest annual increase since February 2022.
The cooler autumnal weather contributed to increased clothing and footwear sales, leading to a 2.5% rise in non-food store sales volumes. Consumers updated their seasonal wardrobes, reflecting a seasonal shift in purchasing behaviour.
Despite the positive performance in technology and seasonal apparel, the demand for big-ticket items, such as furniture and household goods, faced declines. Consumers appeared to be cautious, opting to save for Christmas or spending more on experiences rather than goods.
British Retail Consortium director of insight, Kris Hamer, noted, “Autumn led people to upgrade their wardrobe, as well as the last minute student dash for new computers, as the new academic year began. Big-ticket items…continued to take a hit from some consumers…preferring to spend on experiences.”
Overall, UK retail sales in September outpaced expectations, largely driven by a strong demand for technology despite some declines in other sectors.
