Retail sales edge up 2.3% in September as food spending drives growth
In-store non-food sales were up 0.5% on the year, against growth of 0.8% in September 2024, and ahead of the 12-month average of 0.4%
UK total retail sales rose by 2.3% year on year in September, up from growth of 2% in September 2024 and above the 12-month average increase of 2.1%, according to the British Retail Consortium (BRC).
Food sales increased by 4.3% on the year, compared with 2.3% growth in September 2024 and above the 12-month average of 3.4%. Non-food sales rose by 0.7%, below both the 1.7% growth recorded a year earlier and the 12-month average of 0.9%.
In-store non-food sales were up 0.5% on the year, against growth of 0.8% in September 2024, and ahead of the 12-month average of 0.4%. Online non-food sales increased by 1%, down from 3.4% a year earlier and below the 12-month average of 1.8%.
The online penetration rate – the share of non-food items bought online – rose to 37.6% in September from 37.2% in September 2024, slightly above the 12-month average of 37%.
British Retail Consortium chief executive Helen Dickinson said: “With the Budget looming large, and households facing higher bills, retail spending rose more slowly than in recent months. Milder weather meant shoppers delayed refreshing autumn and winter wardrobes and growth in food sales was largely inflationary rather than volume growth. Meanwhile, electrical sales were buzzing thanks to the release of the new iPhone and Apple Watch.
“Rising inflation and a potentially taxing Budget is weighing on the minds of many households planning their Christmas spending. Retailers also face difficult decisions about investment and hiring over the golden quarter given uncertainty over business rates bills arriving in April. The future of many large anchor stores and thousands of jobs remains in jeopardy while the Treasury keeps the risk of a new business rates surtax on the table. By exempting these shops when the Budget announcements are made, the Chancellor can reduce the inflationary pressures hammering businesses and households alike.”
Linda Ellett, UK head of consumer, retail and leisure at KPMG, added: “Overall sales grew in September, driven largely by household goods and increased mobile phone sales, as prominent brands launched new models. However, non-food sales are only growing by around 1.2% on average, indicating that spending continues to be very targeted as consumers remain cautious.
“As we enter the golden quarter for the sector, retailers are planning product ranges and promotions to try and increase that rate of sales growth. They are also mindful that the Budget is beginning to move into view, with related detail about business rates reform and a general need for a boost to consumer confidence.”
