Retailers have suffered their worst September on record, with the British Retail Consortium (BRC) blaming the spectre of a no-deal Brexit for holding back consumer spending.
Data from the BRC – KPMG Retail Sales Monitor shows total sales slipped 1.3% with like-for-likes down 1.7%.
Food sales increased 1.2% over the three months to September but non-food sales were down 1.7%.
The BRC stated that many consumers held off from non-essential purchases, or shopped around for the bigger discounts, while the new autumn clothing ranges suffered from the warmer September weather.
BRC Chief Executive Helen Dickinson commented: “The longer-term prospect continues to be bleak, with the 12-month average once again plumbing new depths at a mere 0.2%. Online non-food sales growth was the lowest on record, though still compared favourably to the decline in growth at physical stores.
“With four months of negative sales growth since March, the ongoing political gridlock surrounding Brexit is harming both consumers and retailers. Clarity is needed over our future trading relationship with our closest neighbours, and it is vitally important that Britain does not leave the EU without a deal.”
Separate data from Barclaycard also pointed to a subdued picture for retail. However, there was growth in spending on entertainment and nights out, helping overall consumer spending on credit and debit cards grow by 1.6% year-on-year.
The research also revealed the trend towards stockpiling had continued, with 18% of consumers buying essential items in case of future shortages, up 1% from August.
Esme Harwood, director at Barclaycard, said: “Confidence remains low with consumers uncertain about the economic outlook. In the run up to Brexit, the stockpiling trend shows no sign of going away with cautious shoppers already looking ahead to Christmas and buying festive food and drink in case unexpected shortages hit the shelves in the months ahead.”
NAM Implications:
- Worth keeping in mind the global uncertainty on all counts arising from years of high level borrowing…
- …and Brexit merely the latest symptom/excuse…
