Non-Food Sales Decline and Inflation Affecting Consumer Spending

  • UK retail sales growth slowed to 2.7% in September
  • Food sales increased 7.4%, below the 12-month average growth of 8.4%
  • Non-food sales decreased 1.2%, below the 12-month average growth of 0.6%
  • In-store non-food sales increased 0.3%, below the 12-month average growth of 3.2%
  • Online non-food sales decreased by 3.6%, compared to a decline of 2.6% in September 2022
  • High cost of living impacts consumer spending on big ticket items like furniture and electricals
  • Retail sector resilience is dented, with a widening gap between strong and weak performers
  • Promotions expected to be abundant for Christmas shopping
  • Price-driven purchasing decisions will dominate the holiday season

UK retail sales growth slowed to 2.7% in September, according to the BRC, compared to a 2.2% increase in September 2022. Food sales increased by 7.4%, below the 12-month average of 8.4%. Non-food sales decreased 1.2%, falling below the 12-month average growth of 0.6%. In-store non-food sales rose 0.3%, lower than the 12-month average growth of 3.2%, while online non-food sales dropped by 3.6% compared to a decline of 2.6% in September 2022. The high cost of living is affecting consumer spending, particularly on big ticket items like furniture and electricals. The retail sector’s resilience is being challenged, with the gap between strong and weak performers widening. Retailers are expected to offer more promotions for Christmas shopping as they battle for customers amid tight household budgets. Price-driven purchasing decisions will be crucial during this critical holiday season.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about UK retail sales growth, citing relevant sources (BRC) and including quotes from experts in the field to support the claims made.
Noise Level: 3
Noise Justification: The article provides relevant information about UK retail sales growth and includes quotes from experts to support its claims. However, it lacks a deeper analysis of long-term trends or possibilities, antifragility, accountability, scientific rigor, staying on topic, evidence, data, examples, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: UK retail sector
Financial Rating Justification: The article discusses the slowdown in UK total retail sales growth and its impact on various categories of products, which can affect the performance of retail companies and their stocks, thus having an effect on 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.

Reported publicly: www.retailsector.co.uk