UK retail sales growth slows - BRC

Retail sales growth slowed in October, industry data showed on Tuesday, as hard-pressed consumers opted to wait for Black Friday sales and festive deals.

Source: Sharecast

According to the British Retail Consortium, UK total retail sales increased by 1.6% in October.

That was down on the 2% rise seen in September, however, and below the 12-month average of 2.1%. It was also the weakest growth since May.

Food sales were stronger, up 3.5%. But non-food sales inched up just 0.1%, also below the annual average, of 0.6%.

Helen Dickinson, BRC chief executive, said: "October was a subdued month.

"Many delayed spending, waiting for Black Friday deals and cooler temperatures before buying toys, electronics and clothing. Furniture and other homewares fared better, as people began preparing their homes ahead of family festive gatherings.

"Food sales also saw good growth, but this was mostly driven by higher prices rather than higher volumes.

"Retailers are counting on Black Friday to deliver a vital boost, but looming Budget decisions risk undermining fragile consumer confidence."

Chancellor Rachel Reeves is due to present her Budget on 26 November.

She is widely expected to raise taxes, despite sluggish economic growth, as she battles soaring government spending and mounting debt.

Commenting on food sales, Sarah Bradbury, chief executive of industry body IGD, said: "Confidence has dipped, with shoppers prioritising saving money over quality for the first time this year.

"The news of potential tax rises will concern many shoppers, even as food price inflation eased somewhat.

"Looking ahead, we predict shoppers will be extra cautious in the short term, to ensure they can afford to treat themselves at Christmas."

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