Retail spend slowed in September despite an uplift in total retail sales.
New figures from the the British Retail Consortium (BRC) show total UK retail revenues rose by 2.3% year on year in September for the 5 weeks from 31 August to 4 October, compared to 2% growth in September 2024.
Food sales were up 4.3% year on year in September, against growth of 2.3% the same time last year, the organisation reported.
Non-food sales increased by 0.7% over the month, compared to a 1.7% rise the year prior, while in-store non-food revenues nudged up 0.5% over the period, against a 0.8% increase last September.
Online non-food sales climbed 1% during the period, against a growth of 3.4% in September 2024.
BRC CEO Helen Dickinson said: “With the Budget looming large, and households facing higher bills, retail spending rose more slowly than in recent months.
“Milder weather meant shoppers delayed refreshing autumn and winter wardrobes and growth in food sales was largely inflationary rather than volume growth.
“Meanwhile, electrical sales were buzzing thanks to the release of the new iPhone and Apple watch.”
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She continued: “Rising inflation and a potentially taxing Budget is weighing on the minds of many households planning their Christmas spending.
“Retailers also face difficult decisions about investment and hiring over the Golden Quarter given uncertainty over business rates bills arriving in April.
“The future of many large anchor stores and thousands of jobs remains in jeopardy while the Treasury keeps the risk of a new business rates surtax on the table.
“By exempting these shops when the Budget announcements are made, the Chancellor can reduce the inflationary pressures hammering businesses and households alike.”
Last month, the BRC reported that consumer confidence slumped in September amid fears over the state of the UK economy and the potential of higher taxes.
Expectations for the state of the overall economy dropped from -32 in August to -36 in September, according to the trade association.
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