October was a subdued month, with the weakest growth since May, although furniture performed better than other sectors, says the British Retail Consortium.
According to the latest BRC-KPMG Retail Sales Monitor, UK Total retail sales increased by 1.6% year on year in October, against a growth of 0.6% in October 2024. This was below the 12-month average growth of 2.1%.
Food sales increased by 3.5% year on year in October, against a growth of 2.6% in October 2024. This was flat against the 12-month average growth of 3.5%.
Non-Food sales increased by 0.1% year on year in October, against a decline of 1.1% in October 2024. This was below the 12-month average growth of 1.0%.
In-Store Non-Food sales increased by 0.1% year on year in October, against a decline of 2.0% in October 2024. This was below the 12-month average growth of 0.6%.
Online Non-Food sales were flat at 0.0% year on year in October, against a growth of 0.4% in October 2024. This was below the 12-month average growth of 1.7%.
The online penetration rate (the proportion of Non-Food items bought online) increased to 37.9% in October from 37.8% in October 2024. This was above the 12-month average of 37.1%.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Many delayed spending, waiting for Black Friday deals and cooler temperatures before buying toys, electronics and clothing. Furniture and other homeware fared better as people began preparing their homes ahead of family festive gatherings. Food sales also saw good growth, but this was mostly driven by higher prices rather than higher volumes.”
“Retailers are counting on Black Friday to deliver a vital boost, but looming Budget decisions risk undermining fragile consumer confidence. With demand weak and business rates unresolved, retailers face hard choices on investment and recruitment. A business rates surtax on retail would put major stores and thousands of jobs at risk. The Chancellor should use the Budget to remove this threat and help curb inflation for businesses and families.”
Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, said: “October’s retail sales growth fell back compared to recent months, with online growth drying up altogether. Sales of many household goods have seen consistent growth in recent months, linked to the lag benefit from the house buying surge seen before Stamp Duty changes in Spring. But many home related categories fell in October and the coming months will tell whether this reflects the flattening out of the housing market, or a cautious consumer concerned about the UK’s economic prospects.”
“With Black Friday sales already getting underway and Christmas displays also now up in many stores, retailers are aiming at swiftly reversing the slowdown in sales growth seen during October. Our own research indicates that the majority of shoppers are considering purchases over the Black Friday period, and that AI will play a growing role in how consumers search for and find promotional offers or gifts. This tech evolution presents both challenges and benefits to retailers trying to capture these tech savvy shoppers.”
