The latest British Retail Consortium (BRC)-KPMG Retail Sales Monitor shows growth slowed last month as consumers limited their spending in the face of higher housing and fuel costs.
Total retail sales increased by 2.7% in September, in line with the three-month average growth of 2.7% but well below the 12-month rate of 4.2%.
Food sales rose 7.4% over three months to September, but non-food sales decreased by 1.2%.
Alongside food and drink, health and beauty continued to be one of the strongest performing categories on the high street. However, a growing number of categories, including clothing, fell into negative territory last month as the unseasonal warm weather delayed trips to the shops to stock up on winter purchases. Big-ticket items such as furniture and electricals also performed poorly as cash-strapped consumers made cutbacks.
“Sales growth in September slowed as the high cost of living continues to bear down on households,” said Helen Dickinson, Chief Executive of the BRC.
“With sales volumes down, growth has been artificially boosted by high inflation over the last two years. As inflation eases, so too will longer-term sales growth prospects. The coming months are crucial for retailers as they enter the ‘Golden Quarter’ and they’re investing heavily to support customers and bring prices down. However, such efforts are challenged by the £400m increase in business rates expected next year. The Chancellor should scrap the rates rise in his upcoming Budget and enable retailers to deliver more value for customers at such a critical time for the economy.”
