In September 2024, British retail sales experienced their most significant growth since January, with foot traffic increasing for the first time in over a year, according to the Office of National Statistics (ONS). Sales volumes rose by 3.9% year-on-year, marking the largest annual increase since February 2022. Month-over-month, sales rose by 0.3% from August to September, following a 1% increase the previous month.
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During the third quarter, retail sales volumes climbed 1.9% compared to the prior three months, with a 2.6% increase year-on-year. Total UK footfall also grew by 3.3% in September, ending a year-long decline.
Kris Hamer, Director of Insight at the British Retail Consortium, says: 'September saw the strongest retail sales growth since January, and the highest sales volume since March 2022. This was thanks to areas such as clothing and computing performing particularly well, as autumn led people to upgrade their wardrobe as well as the last minute student dash for new computers as the new academic year began. Big ticket items, such as furniture and other household goods continued to take the hit from some consumers, such as those saving for Christmas or preferring to spend their money on experiences.'
'While the growth in sales is welcome, retailers are nervously waiting for the Budget to see if they are going to be whacked by more costs, particularly trailed changes to Employer National Insurance contributions, as well as the inflationary increase to business rates coming next year. These changes would add more pressure to an industry that already pays far more than its fair share in business taxes. The Chancellor should use the Budget to level the playing field with other parts of the economy, introducing a Retail Rates Corrector, a 20% downwards adjustment to the business rates bills of all retail properties. This would help drive investment and economic growth, supporting jobs, shops, high streets and communities.'
More information:
BRC
www.brc.org.uk