The Courier & Advertiser (Perth and Perthshire Edition)
Retail sales dip ahead of Christmas
UK retail sales dropped sharply in September despite an underlying trend of steady growth in the face of rising prices, figures show.
There was an unexpected sharp fall of 0.8% last month, reversing a surge in August, according to the Office for National Statistics (ONS).
The quantity bought in Britain’s retail sector rose 1.2% in September from the same month in 2016, down from 2.3% growth in the year to August and well below the expected 2.3%.
ONS statistician Kate Davies said the underlying trend was still of steady growth following a weak start to the year and a background of rising prices.
Store prices continue to rise across all store types and are at their highest yearon-year price growth since March 2012.
Online sales values increased year-onyear by 14%, accounting for approximately 17% of all retail spending.
“It’s important to avoid overstating the negatives in September’s retail sales, as retailers did manage to post year-onyear growth despite the range of headwinds they are battling currently,” said Ian Gilmartin, head of retail and wholesale at Barclays Corporate Banking.
“However, sales were down compared to a month earlier, with the expected dip following August’s strong result worse than predicted.
“Footfall struggled, in part due to a wetter-than-usual September, with continued double digit increases in online sales coming to the rescue.”
Ian Geddes, head of retail at Deloitte, said: “Against a well-documented backdrop of rising inflation, increasing levels of debt and fragile consumer confidence, the retail industry will have been looking forward to entering the final three months of the year – typically a crucial trading period that encompasses both Black Friday and the Christmas shopping periods.
“However, the prospect of the Bank of England raising interest rates for the first time in over 10 years next month could come at a challenging time for the retail sector.
“Issues around consumer finances, spending power and rising cost pressures are already challenging the industry: an interest rate rise could cause an additional headache for retailers in the lead up to Christmas.”