Growth in the grocery retail market slackened with the arrival of autumn, shows the data released on Tuesday (8).
According to the latest British Retail Consortium (BRC)-KPMG retail sales monitor, food sales increased 3.1 per cent year on year over the three months to September, against a growth of 7.4 per cent in September 2023. This is below the 12-month average growth of 4.4 per cent.
Overall, total retail sales increased by 2.0 per cent year on year in September, against a growth of 2.7 per cent in September 2023. This was above the three-month average growth of 1.2 per cent and the 12-month average growth of 1.1 per cent.
Commenting on the figures, Sarah Bradbury, CEO at IGD, said, “Shopper confidence remained stable in September after a summer buoyed by sport. As shoppers turn their focus to the upcoming winter months, news of a difficult Autumn Budget and rising energy prices will likely cause a downturn in confidence with cost-of-living concerns remaining front and centre in shoppers’ minds.
“Growth in the grocery retail market slackened with the arrival of autumn. September's sales were still ahead year-on-year, but the pace of increase was down versus August, no doubt depressed by the wet weather as well as cautionary economic messages from the government.
“With the golden quarter just beginning, retailers have been implementing seasonal ranging earlier than ever, determined to make the most of the coming key trading period.”
Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said, “Retail sales saw the strongest growth in six months as non-food performed better than expected. As Autumn rolled out across the UK, shoppers sought to update their wardrobes with coats, boots and knitwear.
"The start of the month also saw a last-minute rush for computers and clothing for the new academic year. Ongoing concerns of consumers about the financial outlook kept demand low for big ticket items such as furniture and white goods.
“The coming months are crucial for the economy as retailers enter the “Golden Quarter”. But in the face of weak consumer confidence and the continued high burden of business rates, retailers’ capacity for further investment is limited.
"As a result, retailers are holding their breath ahead of the Budget as they work out their investment strategies for the coming year. Decisive action from the Chancellor, such as introducing a 20 per cent Retail Rates Corrector, would help to drive investment and economic growth up and down the country.”
Fed National President Mo Razzaq
