October 10, 2023 05:33 GMT
REPEAT: Shop Sales Slow in September
BRC-KPMG Total Retail Sales rose +2.7%Y/Y in September (vs +4.1%Y/Y growth in August). Like-For-Like Sales also slowed to +2.8%Y/Y in September (vs +4.3%Y/Y growth in August).
- Non-Food Total Sales led the decline in the rate of Total Sales growth, decreasing -1.2% over the 3-months to September with Clothing sales moving into negative territory as unseasonal warm weather delayed demand for winter wardrobe purchases.
- Whilst Food Sales increased +7.4% 3m-Y/Y , this was the slowest 3-month increase since the 3-months to November 2022. This may have reflected a slowdown in food price inflation.
- Sales growth slowed due to the high cost of living, Chief Executive of BRC stated. Big ticket items such as furniture performed poorly as consumers limited spending in the face of higher housing, rental and fuel costs.
- UK activity data for August (including monthly GDP)is due to be released on Thursday and is forecast to grow +0.2%M/M vs a decline of -0.5%M/M in July where Retail Sales growth was lowest year-to-date.
- UK Head of Retail at BRC stated, ‘with the warm weather delaying household heating, news on falling inflation and a hold on rising interest rates, consumers will hopefully be feeling more confident as thoughts turn to Christmas shopping.’
- Retail Sales Volumes continue to remain below pre-pandemic levels.