Retail sales pick up as Christmas shopping starts early

Retail sales in Great Britain rose for the first time in six months in October as consumers started their Christmas shopping earlier than usual this year, stated recent reports citing latest data from Office for National Statistics (ONS).

As per ONS figures , total volume of goods bought rose by 0.8 per cent last month compared with flat sales in September. Food store sales volumes fell by 0.3 per cent on the month, although they remain 3.4 per cent above pre-pandemic levels.

The rise is sales is said to be driven by rise in spending on toys and clothes. Experts said the early Christmas buying was ‘probably spurred by concerns about item availability and a desire not to miss out on the festive season’, and consumers still preferred shopping in-store for seven out of ten purchases. 

The rise in October came after five months of no growth in the longest spending slump since 1996 after the easing of coronavirus restrictions this summer. 

Reacting to the ONS data, Helen Dickinson, the chief executive of the British Retail Consortium, said the sector was putting in a gargantuan effort to ensure food and gifts were ready for Christmas but that the supply chain disruption and staff shortages were pushing up costs and creating some gaps on the shelves.

“Retailers will be relieved by the improvement in sales as they enter the final straight in the run up to Christmas. Footfall growth on UK streets is the highest among major EU economies, and this is clearly translating into consumer spend. Meanwhile online sales remain well above pre-pandemic levels as retailers ramp up their delivery and click-and-collect services. 

“There were big improvements in clothing and footwear sales, including formalwear, as social calendars filled up and the public became increasingly confident about going out. Furthermore, with Halloween heavily curtailed by the pandemic last year, October showed chocolates and children’s costumes selling a treat as families made the most of the occasion,” Dickinson said.

With a rise in spending earlier than usual, retailers are hopeful that demand will continue through the coming months.

Jacqui Baker, partner and head retail at RSM UK believes that Christmas may have come early for retailers, as “worries around deliveries and supply chain issues have encouraged more consumers to bring Christmas spending forward to avoid disappointment on Christmas morning”. 

“Many are opting to pay full price rather than waiting for the Black Friday and Cyber Monday deals at the end of November. This could be a good move as supply issues have changed the retail landscape this year, and once stock is gone it’s gone, as it will be difficult to replenish products; so many retailers will be shifting old stock into the Black Friday sales rather than discounting this year’s must-have Christmas presents,” Baker said.