Retail sales slumped last month to their worst performance since January as consumer confidence was dented by the petrol shortages and other well-publicised bad news that threatens to halt the country’s recovery from the pandemic.
The figures from the BRC and KPMG show total sales increased by just 0.6% in September against a 5.6% rise in the same month last year. It is also a marked slowdown from the 3% rise in August and 6.4% increase in July.
Over the three months to September, non-food retailers saw total sales rise by 3.8% against the same period last year. Meanwhile, food stores saw sales increase by 2.3% for the quarter.
Helen Dickinson, the British Retail Consortium’s Chief Executive, highlighted that larger purchases, such as furniture and homeware, were particularly impacted by the fuel crisis as people were less likely to venture out in their cars to collect goods. However, sales of footwear and clothing benefitted from workers returning to the office.
Online sales were down on the previous year, although they remain significantly above pre-pandemic levels, reinforcing the permanent changes in consumer behaviour.
“An uncertain backdrop and slower growth means the fourth quarter is looking challenging as the economic recovery is dependent on strong retail sales during the festive season,” said Dickinson.
“Retailers, farmers and manufacturers are already making preparations to ensure enough food and festive gifts move through the supply chain in time for Christmas. Unfortunately, the lack of drivers is hindering these preparations and increasing costs, which will eventually be reflected in higher prices.”
Meanwhile, Paul Martin, UK head of retail at KPMG, stated that retailers will have to “work very hard to ensure the right availability of the right product at the right price to satisfy the requirements of an ever more demanding customer.”
NAM Implications:
- Proactive NAMs have anticipated (and acted upon) this…
- …since the imposition of Lockdown, 23 March 2020.
- The underlying problems remain for the rest of us…
