Disappointing October retail sales after autumn drags its heels

YEAR-ON-YEAR growth in the value of UK retail sales accelerated from 2.4% in September to 2.6% in October, but remained well adrift of the 3.6% rate recorded in August, an industry survey shows.

The survey, published today by the British Retail Consortium, shows strong demand in October for computer games, computing devices and televisions, and for home accessories and textiles.

However, there was a year-onyear fall in clothing sales, which was attributed by the BRC partly to the later-than-usual arrival of autumnal weather.

David McCorquodale, head of accountancy firm and BRC survey sponsor KPMG’s UK retail sector practice, said: “October was another difficult month for retailers, reminding us that recovery is a slow, relentless slog. Whilst the summer months hinted at increased consumer confidence, retailers will struggle to maintain a sustained sales recovery until wage growth outpaces price inflation. While confidence may lead consumers to browse, it’s cash that’s needed in the tills.”

He added: “Clothing and foot- wear had a difficult month as temperatures refused to drop, whilst other non-food items such as electricals performed better, aided by the online channel.”

The BRC said online sales of non-food products in October were up by 12.1% on the same month of last year.

BRC director-general Helen Dickinson said: “It’s encouraging to see growth heading in the right direction again after a disappointing slowdown in September.

“Much of the improvement was driven by sustained demand for new games and gadgets, and there was also a strong showing for home accessories and textiles. In contrast, clothing sales fell for the first time since March, suggesting that many customers prioritised leisure and home improvements over refreshing their wardrobes until more autumnal conditions took hold.”

She added: “While conditions remain challenging, the signs are that customers are managing their budgets well, while allowing some leeway for occasional treats. Retailers will be looking to respond to this appetite for good value, with a little luxury here and there, in their promotions for the Christmas period.”