// UK retail sales volumes fell 0.3% when compared to February 2020, the first drop post-lockdown
// The cost-of-living crisis and the impact of store closures for the Queen’s funeral contributed to the fall
Retail sales fell to below pre-Covid levels last month, according to ONS data, as the cost-of-living crisis and the impact of store closures for the Queen’s funeral took its toll.
In September, sales volumes excluding fuel were down -0.3% when compared to February 2020 while sales values jumped 11.8%, due to inflation.
Month on month sales volumes dipped 1.5%, and were down 6.2% on September last year.
PWC industry leader for consumer markets Lisa Hooker said: “Worryingly, September was the first month post-lockdown when retail sales volumes dipped below pre-pandemic levels, suggesting that consumers’ post-Covid pent-up demand may have fully unwound.
She said that did not bode well for retailers over the crucial Christmas period.
“There is no question that the momentum is downward as retailers enter the critical Golden Quarter period in the run up to Christmas,” said Hooker.
“Political and economic uncertainty, combined with increasing utility bills and the threat of higher mortgage interest rates will put a severe dampener on consumer spending in the coming months.”
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“Lower demand, cost inflation and political uncertainty will also be weighing on retailers, who will without doubt be battening down the hatches for the bitter winter ahead.”
Grocery store sales volumes fell by 1.8% in September, which leaves them 3.2% below their pre-coronavirus levels in February 2020.
Online sales volumes dipped 3%, although this was still 18% above pre-Covid levels.
Just over a quarter (26.4%) of sales took place online in September, which has been broadly consistent since May this year.
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