UK retail sales growth slowed in October as shoppers held back discretionary purchases ahead of Black Friday, according to new data from BRC’s KPMG Retail Sales Monitor.

Figures from the latest British Retail Consortium (BRC) research revealed that total sales rose 1.6% year on year over the four weeks to 1 November, up on the 0.6% growth seen a year earlier but below the 12-month average of 2.1%.

Food sales increased 3.5%, matching their 12-month trend, while non-food inched up just 0.1% against a 1.1% decline last year.

In-store non-food sales also rose 0.1%, while online non-food was flat, with growth in both channels falling short of their longer-term averages. Online penetration edged up to 37.9%.

BRC chief executive Helen Dickinson said October delivered the weakest sales growth since May as consumers postponed purchases of toys, electronics and clothing. She added that retailers were looking to Black Friday to revive demand but warned that Budget decisions on business rates risked undermining fragile confidence.

KPMG’s UK head of consumer, retail and leisure Linda Ellett said recent strength in household goods had cooled, potentially reflecting a softening housing market or wider caution about the economic outlook.

“October’s retail sales growth fell back compared to recent months, with online growth drying up altogether,” she said.

“With Black Friday sales already getting underway and Christmas displays also now up in many stores, retailers are aiming at swiftly reversing the slowdown in sales growth seen during October.

“Our own research indicates that the majority of shoppers are considering purchases over the Black Friday period, and that AI will play a growing role in how consumers search for and find promotional offers or gifts. This tech evolution presents both challenges and benefits to retailers trying to capture these tech savvy shoppers.”

IGD chief executive Sarah Bradbury said food shoppers had become more focused on controlling spending, with confidence dipping and value overtaking quality as a priority, adding that “the news of potential tax rises will concern many shoppers, even as food price inflation eased somewhat.”

“With the job market stalling and the gap between pay growth and price rises narrowing, overall shoppers aren’t feeling much benefit,” Bradbury said.

“Looking ahead, we predict shoppers will be extra cautious in the short term to ensure they can afford to treat themselves at Christmas.

“Depending on the impact of the Budget, the festive period will provide opportunities for trade-up. Earlier this year, we saw in our research that many shoppers indicated they planned to buy more premium private label products and opt for specific brands. If they stick to these intentions, it could provide a boost to spending”

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