The latest data from the British Retail Consortium (BRC) shows that UK retail sales growth in October failed to meet recent standards.

According to the BRC-KPMG tracker, retail sales saw a year-on-year increase of 2.5% last month, showing improvement from a 1.6% rise in October 2022. However, this was below the three-month average increase of 3.1%.

In terms of specific categories, food sales rose by 7.9% in the three months leading to October, which was less than the 12-month average increase of 8.5%. Non-food sales, on the other hand, declined by 1.0%, falling short of the 12-month average climb of 0.6%.

Helen Dickinson, Chief Executive of the BRC, noted, "Retail sales growth slowed as high mortgage and rental costs further impacted consumer confidence. Many households are also deferring their Christmas spending in the hopes of securing deals during the upcoming Black Friday sales. The cost-of-living squeeze led to an increase in spending on lower-priced indulgences, such as beauty products, referred to as the 'Lipstick Effect.' Additionally, the onset of colder weather contributed to a boost in fashion sales, particularly for outdoor attire.

"While consumers are currently dealing with lower inflation compared to October last year, when inflation reached over 11%, there is no doubt that the past 12 months have had an impact on confidence and spending ability. Alongside a higher interest rate environment, diminishing COVID savings, and the return of heating costs, consumers are now thinking more cautiously about their expenditure. As a result, the robust demand that supported some retailers over the past 18 months is beginning to wane." Photo by  Chris Talbot, Wikimedia commons.