Sales volume continue to fall: BRC

Shoppers are beginning to cut back on the number of items they are buying in an effort to offset higher prices, indicates an industry report today (11). 

Sales rose 2.2 per cent in September, according to the British Retail Consortium (BRC) and the advisory firm KPMG, indicating a decline in volumes as inflation hit almost 10 per cent. 

“Over the three months to September, food sales increased 4.6 per cent on a Total basis and 4.2 per cent on a Like-for-like basis. This is above the 12-month Total average growth of 1.1 per cent. For the month of September, food was in growth year-on-year,” BRC stated today.

The main cutbacks were on non-food items, with spending down by 0.4 per cent last month, according to the BRC, while spending on food rose 4.6 per cent, driven largely by inflation. 

Helen Dickinson, the chief executive of the BRC, said that consumers were “shopping cautiously” and particularly avoiding expensive products such as computers, TVs and furniture. She said many households are also preparing for higher energy costs this winter by purchasing blankets and energy-efficient appliances, such as air dryers and air fryers.

“A difficult winter looms for both retailers and consumers. Costs are increasing throughout retailers’ supply chain, the pound remains weak, interest rates are rising, and a tight labour market is pushing up the cost of hiring. All of this is making it harder for retailers to reduce prices and help struggling households,” she said. 

Susan Barratt, CEO of IGD, pointed out that food and drink sales in September fell behind August as the weather cooled and life returned to normal after the holidays.  

“However, there was a small uptick in sales in the week following the death of Queen Elizabeth II as the nation came together to mourn her passing, distracted momentarily from the stiffening economic headwinds.   

“Nevertheless, the month was dominated by rising prices, particularly for food and energy, but the Energy Price Guarantee announced by the government contributed to a small rise in our Shopper Confidence Index. However, without much good news out there and shoppers facing a tough winter, there are still many challenges ahead,” Barratt said.