The biggest monthly drop in food sales in over a year and fewer purchases of clothes amid an unusually warm autumn dragged retail sale volumes down last month, new official data has showed.
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Sales volumes at textile, clothing and footwear stores were up 2.4% year-on-year in October, according to The Office for National Statistics (ONS). ONS states that £28.8 billion was spent in the United Kingdom both online and offline during last month, above the £28.7 billion in October 2014.
“Retailers have taken a minor hit in sales this month, but this is not surprising given the timing of Black Friday, and shoppers saving their money in anticipation of this sales period”, comments Dan Wagner, founder and CEO of Powa Technologies – a provider of e-commerce solutions for retailers.
On an annual basis, retail sales grew at a faster pace of 2.5 percent in October, following a 2.1 percent gain in September.
Consumers remain “the main engine of growth” and can withstand a forecast pickup in inflation next year, said Alan Clarke, an economist at Scotiabank in London.
‘Although oil prices have fallen back again this week, it is unlikely that the very large falls seen a year ago will be replicated, while the deflationary pressures in the food sector also appear set to ease. Excluding auto fuel, retail sales declined 0.9% from September’s growth of 1.5%, thus, being also beyond the projected 0.6% decrease.
Alex Smith-Bingham, Head of Digital, Consumer Products and Retail, Capgemini, added: “Given the level of discounting we saw in 2015 a slowdown in sales during the run up to Black Friday is natural”.
“The shopping period over the coming weeks is of vital importance to retailers, and it will be interesting to see how aggressive they are in their discounting in the run-up to Christmas”, said Howard Archer, chief United Kingdom and European economist at IHS Global Insight.
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“In particular, retailers approach to “Black Friday” at the end of November will be key”.
