October was a subdued month, with the weakest retail sales growth seen since May as shoppers delayed spending, waiting for Black Friday deals to start kicking in though food sales still saw an uptick, shows the industry data released today (Nov 11).
According to data released by British Retail Consortium (BRC) covering the four weeks from Oct 5 to NOv 1, food sales increased by 3.5 per cent year on year in October, against a growth of 2.6 per cent in October 2024. This was flat against the 12-month average growth of 3.5 per cent.
Overall, total retail sales increased by 1.6 per cent year on year in October, against a growth of 0.6 per cent in October 2024. This was below the 12-month average growth of 2.1 per cent.
Non-Food sales increased by 0.1 per cent year on year in October, against a decline of 1.1 per cent in October 2024. This was below the 12-month average growth of 1.0 per cent.
Commenting on the figures, Helen Dickinson, Chief Executive of the British Retail Consortium, said, “October was a subdued month, with the weakest growth since May.
"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.”
Talking about the performance of food and drink sector, Sarah Bradbury, CEO at IGD, said, “Shopper focus has shifted towards controlling their spending more tightly this month for food and grocery shopping.
"Confidence has dipped, with shoppers prioritising saving money over quality for the first time this year. The news of potential tax rises will concern many shoppers, even as food price inflation eased somewhat.
"With the job market stalling and the gap between pay growth and price rises narrowing, overall shoppers aren’t feeling much benefit. Looking ahead, we predict shoppers will be extra cautious in the short term to ensure they can afford to treat themselves at Christmas.
"Depending on the impact of the Budget, the festive period will provide opportunities for trade-up. Earlier this year, we saw in our research that many shoppers indicated they planned to buy more premium private label products and opt for specific brands. If they stick to these intentions, it could provide a boost to spending."