// Retail sales slowed in October as retailers brace themselves for consumers opting for pre-loved gifts and strict budgets this Christmas
// 48% of Brits are planning to cut down on Christmas purchases, including festive activities and gifts, to save money this year, research from Barclays shows
Retail sales slowed in October as retailers brace themselves for consumers opting for pre-loved gifts and tighter budgets this Christmas to cope with the cost-of-living crisis.
The monthly snapshot of spending by Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, found that 50% of consumers were planning to tighten their belts this Christmas, cutting back on presents, food and drink, and socialising to save money this year.
Of those consumers, six in 10 (59%) will be spending less on gifts for family and friends.
In response, 67% of Britons reported looking for ways to cut costs, with 48% of these shoppers paying closer attention to the prices of items they buy regularly, and the same percentage buying budget or own-brand goods over branded goods.
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Retail sales during October grew by just over 1% in value year on year, driven by inflationary pressures as shoppers bought fewer items per visit, British Retail Consortium (BRC) figures show.
It came as separate figures from Barclaycard also showed that card spending was up 3.5% on last October – higher than September’s 1.8% but well below the 8.8% rise in consumer inflation.
Consumer spend on clothing saw a noticeably smaller decline year-on-year in October 2022 (-0.5%) than in September (-4.1%), as did department stores, at -1% versus -3.5% the previous month.
BRC chief executive Helen Dickinson said: “With November Black Friday sales just around the corner, many people look to be delaying spending, particularly on bigger purchases.
“Clothing and footwear, which saw stronger sales this year, declined as the mild weather meant customers held back on buying winter outfits. Meanwhile, electric blankets, air fryers and other energy-efficient appliances continued to fly off the shelves as people sought future cost savings.
“Christmas will come later than last year for many and may be more gloom than glitter as families focus on making ends meet, particularly as mortgage payments rise.”
KPMG UK head of retail Paul Martin said: “This increase is being driven by inflationary pressures and does not tell the true picture of sales volumes dropping as consumers purchase fewer products per shop.
“Sales across almost every category both online and in-store fell year on year as consumers adjust to shrinking household incomes.”
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