In the latest data release from the Office for National Statistics (ONS), the UK retail landscape continues to grapple with challenges. October witnessed a 0.3% decline in sales volumes, following a revised 1.1% dip in September.
Breaking it down, non-food store sales volumes dipped by 0.2% in October, an improvement from September’s 2.1% fall but indicative of ongoing sectoral challenges. Non-store retailing, predominantly online sales, saw a modest uptick of 0.8% post a 2.4% dip in September.
Delving into the numbers, year-on-year volume sales dropped by 2.7%, adding to the industry’s concerns. In terms of value sales, though there was a 2.2% increase compared to the previous year, a closer inspection reveals a 0.1% decrease from September. Considering inflation, overall value sales showed a decline.
Comparing current sales to February 2020, the pre-COVID month, total sales values marked a 16.9% increase, while volumes dipped by 3.1%. However, this apparent increase is tempered by the impact of inflation over the almost four-year period.
The ONS highlights that retail sales volumes hit their lowest point since February 2021, marked by extensive lockdown restrictions on non-essential retail in England, Scotland, and Wales.
What’s steering this challenging scenario? Reduced spending on fuel, attributed to general caution and unfavorable weather, contributed to the decline. Surprisingly, food store sales also witnessed a dip.
Non-food stores faced their lowest volumes since March 2021, influenced by factors such as the rising cost of living, reduced footfall, and inclement weather. Clothing stores reported a 0.9% drop in sales volumes for October, influenced by warm weather impacting enthusiasm for autumn apparel.
Department stores experienced a slight decline of 0.1%, with some retailers attributing it to a dip in consumer confidence.
In a relatively brighter note, ‘other’ non-food stores displayed positive growth, with sales volumes rising by 0.8%. This rebound was fueled by increased sales in watches and jewellery stores, though caution is warranted given the significant fall observed in September.
Online retail, as anticipated, experienced a modest uptick in volumes. Year on year, online sales values increased by 5.1%, though there was a 1.2% decrease compared to the previous month. While textile, clothing, and footwear e-stores saw an 8.8% increase in value sales compared to a year ago, volumes were down by 2.5%, with inflation accounting for the apparent value increase.
The path to recovery for the UK retail sector remains uncertain, with various factors contributing to the persistent challenges faced by both traditional and online retailers. Stay informed with our in-depth analysis of the latest retail trends and insights.