Retail sales in the United Kingdom have reportedly declined more sharply than predicted in September, as rising costs caused customers to cut back on spending, and with many stores remaining closed on the day of Queen Elizabeth's funeral.
According to the Office for National Statistics, retail sales fell by 1.4% in September, despite a 0.5% decline anticipated by City economists. This is the first time that volumes have gone below pre-pandemic levels.
The most recent statistics show that sales from food shops decreased by 1.8% as consumers became more cost-conscious due to worries about price increases and the cost of living. The statistics come as pressure on households increases across the nation as a result of inflation reaching its highest level in the past 40 years due to rising food prices.
Sophie Lund-Yates, the head equity analyst at Hargreaves Lansdown, stated that the newest installment in the cost-of-living crisis saga is disappointing but not unexpected. Food sales were particularly impacted as consumers cut back on trolley treats and more costly dining patterns.
Spending on more expensive items continued to slide in September, with household goods shops like furniture stores reporting a 1.5% drop in sales. Other non-food merchants, such as jewelers, reported a 0.7% decline in sales in September, while major retailers and departmental store owners saw a 0.6% decline.
Sales at clothes retailers, however, defied the general trend and increased 1% last month, largely as a result of expansion in the footwear sector. Sales volumes in non-food stores also decreased by 0.6% in September.
As more people started buying in actual stores again in September, online sales decreased by 3%, but they were still 18% higher than they were before the outbreak of the pandemic.
In addition, consumers are using their cars and trucks more sparingly, as evidenced by the 1.3% decline in automotive gasoline sales last month, despite ongoing declines in pump costs.
Source credit: https://www.theguardian.com/business/2022/oct/21/retail-sales-fall-in-great-britain-as-shoppers-rein-in-food-spending