Retail sales in September decreased 0.6 per cent on a Like-for-like basis from the same period last year, the slowest rate of growth since January, according to the BRC-KPMG Retail Sales Monitor.
Over the three months to September, food sales increased 2.3 per cent on a Total basis and 1.7 per cent on a Like-for-like basis. This is below the 12-month Total average growth of 4.9 per cent.
During the same period, non-food retail sales increased by 3.8 per cent on a Total basis and 1.6 per cent on a like-for-like basis. This is below the 12-month Total average growth of 14.0 per cent.
“An uncertain backdrop and slower growth means the fourth quarter is looks challenging as the economic recovery is dependent on strong retail sales during the festive season,” Helen Dickinson chief executive if the British Retail Consortium (BRC) commented.
For the month of September, both food and non-food were in growth year-on-year, and on a 2-year basis, non-food sales saw growth of 8.7 per cent for the three-months to September.
“September is traditionally a strong month for UK retailing as it’s back to school month, and in addition this year back to office purchases dominated sales as consumers shopped for new clothes and footwear as many headed back to their workplace for the first time in 18 months,” Paul Martin, UK head of retail at KPMG.
“Overall, the slowdown experienced over the last few months continued in September and the high street saw less than 1 per cent growth with sales falling back across every category other than apparel and beauty, while online sales fell back by -2.2 per cent compared to September 2020 – although online penetration rates remained significantly above pre-pandemic levels,” he added.
Over the three months to September, in-store sales of non-food items grew 10.8 per cent on a Total basis and increased 6.6 per cent on a Like-for-like basis. The Total growth was below the 12-month average of 23.3 per cent.
On a 2-year basis, stores saw a decline of 9.6 per cent on a like-for-like basis and 1.6 per cent on a Total basis.
Online Non-Food sales decreased by 7.3 per cent in September, against a growth of 36.7 per cent in September 2020. This is below the 3-mth average decline of 4.0 per cent. Non-Food Online penetration rate decreased to 40.1 per cent in September from 44.9 per cent in September 2020. While down on last year, it was up 9.7 percentage points on the 30.8 per cent seen at the same point in 2019.
Dickinson noted that driver shortage is hindering the preparations to ensure enough food and festive gifts move through the supply chain in time for Christmas, warning that these increasing costs will eventually be reflected in higher prices.
“Retailers are working hard to recruit and train thousands of new British drivers, but in the interim the government needs to urgently extend its visa scheme to address the shortfall of 90,000 drivers. Without swift action, customers face disruption and frustration this Christmas,” she said.