UK retail sales experienced modest growth in September 2024, led by a surge in clothing and footwear purchases.
- The British Retail Consortium and KPMG reported a 2% increase in overall retail sales compared to September 2023’s growth of 2.7%.
- Non-food sales showed improvement, rising after a previous decline, with online sales seeing a notable increase.
- Seasonal shopping trends contributed significantly, as consumers updated wardrobes and prepared for the new academic year.
- Retailers remain cautious, anticipating upcoming economic policies to influence future strategies.
In September 2024, UK retail sales witnessed a marginal year-on-year increase of 2%, according to data released by the British Retail Consortium (BRC) and KPMG. This growth, though modest compared to the 2.7% recorded in September 2023, exceeded the three-month and 12-month average growth figures, which stood at 1.2% and 1.1% respectively. Such performance highlights a recovery within the retail sector, despite a backdrop of fluctuating consumer confidence.
An intriguing aspect of the current retail landscape is the shift in non-food sales, which, after a year marked by declines, have shown a positive trajectory in September. While in-store non-food sales dropped by 1.5% over the three-month period compared to a 0.3% increase the previous year, online non-food sales recorded a 3.4% rise in September. This shift underscores the growing consumer preference towards online shopping as opposed to traditional retail experiences.
Helen Dickinson, chief executive of the BRC, provided insight into the consumer behaviour driving these sales figures. She noted that “as autumn rolled out across the UK, shoppers sought to update their wardrobes with coats, boots and knitwear,” reflecting a seasonal demand for clothing. Furthermore, a surge in back-to-school shopping contributed to the increased purchases of computers and apparel, as both students and parents prepared for the new academic year.
From the perspective of retail strategy, Linda Ellett, UK head of consumer, retail and leisure at KPMG, observed a “modest, but welcome, sales growth for retailers.” The slight easing of household budget constraints, especially for parents ahead of the school season, played a role in the uptick in children’s clothing and accessories sales. Additionally, returning to work post-summer holidays spurred interest in adult fashion, coinciding with the need for additional layers due to unexpected weather conditions, such as heavy rainfall in certain areas.
The financial landscape remains intricate for retailers as they approach the critical ‘Golden Quarter.’ This period, typically marked by heightened consumer spending, is overshadowed by economic challenges, including muted consumer confidence and a significant burden from business rates. Consequently, retailers are keenly awaiting the government’s budget decisions, which hold the potential to either spur or hinder their investment capabilities. Decisive fiscal measures, such as a proposed 20% retail rates corrector, could play a pivotal role in bolstering economic growth nationwide.
As the retail industry braces for economic shifts, cautious optimism prevails in anticipation of strategic changes by both businesses and policymakers.
