UK retail sales grew in October as colder weather encouraged shoppers to buy autumn and winter clothing, although online retailers continued to outperform the high street.
Like-for-like sales across fashion, lifestyle and homewares increased by 4.6 per cent year on year, according to the latest High Street Sales Tracker from accountancy firm BDO. This marked the strongest growth recorded since January 2025.
However, the improvement was largely driven by online shopping, with digital sales rising 10.1 per cent compared with growth of just 2.2 per cent across physical stores.
Fashion retailers experienced a similar divide, with online sales increasing by 9 per cent while in-store sales grew by just 2.1 per cent.
The figures suggest shoppers may have delayed seasonal purchases until temperatures dropped, following an unusually warm September that dampened demand for autumn and winter clothing.
October’s performance also marked only the third month this year in which retail sales growth outpaced inflation, providing some encouragement for retailers entering the crucial Golden Quarter.
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Sophie Michael, head of retail and wholesale at BDO, said: “Retailers will welcome this result after what has been an extremely challenging year to date. However, they should be cautious about reading too much into a single month’s performance. Colder weather is likely to have prompted shoppers to update their winter wardrobes while promotions activity is likely to have stimulated spending.
“While sales growth has finally moved ahead of inflation, underlying trading conditions remain difficult. Consumer confidence remains fragile and many retailers are working hard to convert the shopper’s interest into spending.
“Many were hoping that the Chancellor’s Budget would provide measures to stimulate growth and support consumer spending. While the decision to freeze business rates for two years offers some reassurance to those who won’t benefit from the full rates relief, there was little to suggest a significant boost to household spending power will appear in the months ahead.
“The reality is that consumers remain cautious and highly price sensitive. Retailers are having to work harder than ever to win every pound of discretionary spend. With Christmas now fast approaching, the challenge for the sector will be turning October’s encouraging performance into sustained demand without sacrificing profitability through ever deeper discounting.”
Photo by Kamilla Isalieva on Unsplash
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