UK retail sales experienced a modest 2% increase year-on-year (YoY) in September 2024, as reported by the British Retail Consortium (BRC) and KPMG Retail Sales Monitor.
This growth, reported for the five weeks from 25 August to 28 September 2024, exceeded the three-month average of 1.2% and the 12-month average of 1.1%. However, the figure is a drop from the 2.7% increase seen in the same month in 2023.
Over the three months to September 2024, food sales saw a rise of 3.1% - below the 12-month average growth of 4.4%. In September alone, food sales also showed growth compared to the previous year.
In contrast, non-food sales dipped slightly by 0.3% over the same period - still an improvement over the 12-month average decline of 1.7%.
In-store non-food sales decreased by 1.5% year-on-year over the three months leading to September, but this was less than the 12-month average fall of 1.9%.
Meanwhile, online non-food sales showed a 3.4% increase in September, surpassing both the three-month average increase of 1.9% and reversing the 12-month average decline of 1.1%.
BRC chief executive Helen Dickinson said: “Retail sales saw the strongest growth in six months as non-food performed better than expected. As autumn rolled out across the UK, shoppers sought to update their wardrobes with coats, boots and knitwear.
“The start of the month also saw a last-minute rush for computers and clothing for the new academic year. Ongoing concerns of consumers about the financial outlook kept demand low for big-ticket items such as furniture and white goods.”
The online penetration rate for non-food items increased to 35.6% in September from 35.1% the previous year, although it remained below the 12-month average of 36.4%.
Dickinson added: “The coming months are crucial for the economy as retailers enter the 'Golden Quarter'. But in the face of weak consumer confidence and the continued high burden of business rates, retailers’ capacity for further investment is limited.
“As a result, retailers are holding their breath ahead of the Budget as they work out their investment strategies for the coming year. Decisive action from the Chancellor, such as introducing a 20% retail rates corrector, would help to drive investment and economic growth up and down the country.”
