UK retail sales fell 0.8% in October
UK retail sales fell by more than expected in October as consumers reduced their spending on food and clothing.
Figures released by the Office for National Statistics showed that retail sales volumes fell by 0.8% from September when they gained 0.5%.
Although sales volumes were up 0.6% on a year earlier, analysts had expected fall 0.2% in October.
The ONS said the main driver of the fall was a 0.6% decline in food sales. Sales from food stores make up 41% of total retail sales.
Never Miss a Retail Update!Sales from non food stores fell by 1% led by a 2.3% decline in sales of clothing, footwear and textiles. Department store sales (non-specialised stores) fell 0.7% on the month while household goods store sales dropped by 0.5%.
Non-store retailing, which includes online and mail-order sales, rose 1.3% in October driven by early Christmas shopping and discounts.
Commenting on the figures David McCorquodale, head of retail at KPMG, said:
“The figures will put even more pressure on retailers to get Christmas right and will certainly influence how they approach the next five weeks of trading.
“We may see some decide to ‘up the ante’ and begin significant promotions and discounts in order to win sales from their competitors. This can be a high risk strategy. Discounting can drive footfall, but if retailers cut too deeply this can impact profitability at a vital time of year.
“One thing is clear: the high street remains as competitive as ever. While consumer confidence remains shaky retailers will have to fight hard to win a share of the Christmas wallet.”
