Online Non-Food Sales Buck Trend as Fashion Suffers
- UK retail sales grew by only 0.6% in October compared to 2.6% in October 2023
- Food sales increased by 2.9% year on year, while non-food sales declined 0.1%
- In-store non-food sales fell 1.2% year on year
- Online non-food sales grew 0.4% year on year despite average decline of 2.5% in October 2023
- BRC attributes slowdown to pre-budget uncertainty and delayed half-term
- Fashion sales were hit hard due to mild weather
- Health and beauty sales remained strong with beauty advent calendars popular
- Retailers face £5bn in new costs announced by Chancellor, including Employer National Insurance, Business Rates, and National Living Wage uplift
UK retail sales grew by a meager 0.6% in October compared to the previous year’s 2.6%, according to the British Retail Consortium (BRC). The organization attributed this slowdown to uncertainty surrounding the autumn budget and a later-than-usual half-term break, which it believes will boost November sales. Food sales increased by 2.9% year on year, while non-food sales declined 0.1%. In-store non-food sales fell 1.2%, compared to a 0.1% drop in October 2023. Online non-food sales bucked the trend with a 0.4% increase year on year, despite an average decline of 2.5% in October 2023. BRC CEO Helen Dickinson OBE said, ‘After a good start to Autumn, October’s sales growth was disappointing.’ She added that mild weather negatively impacted fashion sales and boosted health and beauty sales. Retailers now face £5bn in new costs announced by the Chancellor, including Employer National Insurance, Business Rates, and a National Living Wage uplift, which may hinder investment and growth.
Factuality Level: 8
Factuality Justification: The article provides accurate information about UK retail sales figures, attributing the slowdown to specific factors such as uncertainty surrounding the autumn budget and the timing of the half-term break. It also includes quotes from a relevant source (BRC CEO Helen Dickinson) discussing the impact of the budget on retailers and consumers. The only potential issue is the comparison with 2023, which may be a typo or error as those figures are not accurate for that year.
Noise Level: 3
Noise Justification: The article provides relevant information about UK retail sales figures and offers some analysis on the factors affecting them, such as uncertainty around the budget and rising energy bills. It also includes quotes from a source with expertise in the field. However, it could benefit from more detailed data or evidence to support its claims and provide actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses the impact of the autumn budget on retail sales in the UK, which affects companies and their financial performance. It also mentions the increase in costs for retailers due to new policies such as Employer National Insurance, Business Rates, and the National Living Wage. These factors can influence company revenues and profits, thus impacting financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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