What's happened
UK retail sales growth slowed significantly in October, rising just 0.6% year-on-year, down from 2.6% in October 2023. Factors include pre-Budget uncertainty, rising energy costs, and a later school half-term, impacting consumer spending ahead of Black Friday promotions.
Why it matters
What the papers say
According to Josie Clarke in The Scotsman, October's retail sales growth was disappointing, with BRC chief executive Helen Dickinson noting that rising energy bills and pre-Budget uncertainty spooked consumers. Richard Partington from The Guardian echoed this sentiment, highlighting that fashion sales were particularly hard hit due to mild weather and a later half-term break. Meanwhile, Barclays reported a slowdown in consumer card spending, with essential spending seeing its largest decline since April 2020. Linda Ellett from KPMG emphasized that while clarity from the Budget could boost consumer confidence, the increased costs retailers face will likely temper any positive outlook.
How we got here
Retail sales in the UK have been under pressure due to rising costs and economic uncertainty. The British Retail Consortium (BRC) reported a significant slowdown in sales growth, particularly in fashion and non-food categories, as consumers anticipate upcoming sales events.
Common question
-
What are the major changes in the UK retail sector in 2024?
The UK retail landscape is undergoing significant transformations as companies adapt to changing consumer habits and economic pressures. With new store openings and closures, understanding these shifts is crucial for consumers and industry stakeholders alike. Below are some common questions regarding the current state of the retail sector.
More on these topics
-
Coldplay are a British rock band that were formed in London in 1996. Vocalist and pianist Chris Martin, guitarist Jonny Buckland, bassist Guy Berryman, and drummer Will Champion met at University College London and began playing music together from 1996 t
-
Black Friday may refer to:
-
Barclays plc is a British multinational investment bank and financial services company, headquartered in London, England. Apart from investment banking, Barclays is organised into four core businesses: personal banking, corporate banking, wealth managemen
-
The British Retail Consortium is a trade association in the United Kingdom.