High street sales volumes take a dip RESILIENT
l Economists say festive trading will provide major test of confidence
UK retail sales have recorded their first year-on-year fall since 2013 as store prices increased by an average of 3.6 per cent on last year.
The 0.3 per cent slide in sales volumes compared with a strong October last year, but is the biggest drop since March 2013, the Office for National Statistics( ONS) figures showed yesterday.
The drop comes as house - holds are faced with store prices increasing by an average 3.1 per cent on this time last year, with the largest rise coming from food stores where average prices are up 3.5 per cent – the largest yearon- year price increase since September 2013.
However, figures for the three months to October, which smooth out monthly volatility, show the quantity bought increased by 0.9 per cent from 0.7 per cent in the three months to September.
The quantity bought last month increased by 0.3 per cent compared with the month before, with secondhands tor es such as charitysh ops, auction houses, antiques and fine art dealers
“Although retailers certainly won’t be celebrating the numbers posted, it is actually a better result than we had anticipated”
IAN GILMARTIN, BARCLAYS providing the largest contribution to the growth.
Compared with a year earlier, however, sales volumes in the three months to Octo - ber were just 1.1 percent higher than the year before, the weak est growth rate since May 2013.
Online sales values increased year- on- year by 10.7 per cent, accounting for about 16.9 per cent of all retail spending.
ONS statistician Kate Davies said :“We are con ti nuing to see an underlying picture of steady growth in retail sales, although this October suffered in comparison with a very strong October in 2016.
“Growth month- on- month in October was particularly strong in the second- hand goods sector, which includes auction houses and antique dealers.”
Lisa Hooker, consumer markets leader at PWC, said: “After a strong September, October’s retail sales growth slowed, particularly in comparison to a strong October last year.
“Unseasonably warm weather and Storms Brian and Ophe- lia coinciding with half- term saw some shoppers temporarily stay away from the high street, impacting footfall and sales of non- food items – particularly new season clothing lines.
“We are optimistic about retailers’ prospects in the final two months of the year, as consumer sentiment remains resilient, and is particularly strong amongst younger shoppers. We do not expect the recent rise in interest rates to affect people’ s shopping habits in the short term, and Black Friday sales followed by December Christmas shopping should be a welcome boost for UK retailers.”
Ian Gilmartin, head of retail and wholesale at Bar clays Corporate Banking, said: “Nobody expected a return to significant growth in October, and although retailers certainly won’ t be celebrating the numbers posted, it is actually a better result than we had anticipated.”
B en Brettell, senior econo - mist at Hargreaves Lansdown, added :“Inflation data and wage growth figures confirmed the squeeze on household incomes continues. But so far the UK consumer has proved surprisingly resilient, and retail sales have held up better than many expected. As ever with retail, the Christmas period… will be crucial.”