UK retail sales growth stunted by higher cost of living
Retail sales growth has been artificially boosted by high inflation over the last two years.
Total UK retail sales increased by 2.7% last month compared to a year ago, in line with the three month average but much weaker than the 12 month average of 4.2%, according to the figures from the British Retail Consortium and KPMG.
It was also far below the 4.1% increase in August. Consumers limited spending last month in the face of higher housing, rental and fuel costs, the analysis found.
Recession becomes top concern for UK retail investors
Helen Dickinson, chief executive of the BRC, said: «Sales growth in September slowed as the high cost of living continues to bear down on households. The Indian summer also meant sales of autumnal clothing — knitwear and coats — have yet to materialise.»
Big ticket items such as furniture and electricals performed particularly poorly as consumers cut back on large purchases.
Retail sales growth has been artificially boosted by high inflation over the last two years. As inflation eases, Dickinson expected longer-term sales growth prospects to follow suit.
«The coming months are crucial for retailers as they enter the 'golden quarter' and they are investing heavily to support customers and bring prices down,» said Dickinson.
She called on the chancellor to scrap a £400m increase in business rates expected next year, to help retailers.
Food and drink and health and beauty continue to be the strongest performing categories on the high street.
Food and drink sales were up 7.4% in September, continuing the positive momentum seen in August, but still came in below the 12-month average growth of 8.4%.
Online sales growth continued to fall, with just health, beauty and jewellery recording
Read more on investmentweek.co.uk
