UK retail sales growth slows ahead of Black Friday
Shoppers are also opting for special supermarket meals at home to save on dining out
[LONDON] UK retail sales growth weakened in October, the British Retail Consortium (BRC) said.
Shoppers were holding back on purchases ahead of the government’s upcoming Budget, and in anticipation of Black Friday deals.
Total retail sales rose 1.6 per cent from a year earlier, below the 12-month average and the slowest since May, the BRC said on Tuesday (Nov 11).
Like-for-like sales growth slipped to 1.5 per cent from 2 per cent in September. The subdued pace was driven by non-food spending, with essentially no growth in sales of toys, electronics and clothing.
The data bolsters the sense of an economy in a holding pattern, ahead of Chancellor of the Exchequer Rachel Reeves’ Nov 26 Budget statement.
It is expected to include tax rises as she tries to rebuild stretched public finances. Black Friday is two days later, though promotions typically begin earlier.
UK grocers, including Tesco and Sainsbury, signed a letter to Reeves last month, warning that households would “inevitably feel the impact” of any tax increases, such as higher business rates for supermarkets.
“Retailers are counting on Black Friday to deliver a vital boost, but looming Budget decisions risk undermining fragile consumer confidence,” said BRC chief executive officer Helen Dickinson.
Growth in food sales held up better last month, with total sales up 3.5 per cent and like-for-like sales up 3.1 per cent. Still, that was mostly driven by higher prices rather than higher volumes, said the BRC.
Grocery price inflation slowed to 4.7 per cent in the four weeks to Nov 2, separate data from Worldpanel on Tuesday showed. That was down from 5.2 per cent a month earlier, which was the highest since January 2024.
The easing in price growth was driven by shoppers seeking deals to keep their spending down, ahead of the Budget. About 30 per cent of grocery spending was on promoted items, based on Worldpanel, formerly known as Kantar.
Shoppers are also opting for special supermarket meals at home, to save on dining out.
Sales of premium own-brand food are expected to double in the approach to Christmas, reaching £1 billion (S$1.7 billion) for the first time in December, Worldpanel expects.
Black Friday is still expected to boost sales for grocers, particularly online.
Last year, there was an average sales uplift of 114 per cent, with Amazon, Tesco and Asda the top three destinations for spending, said Worldpanel. BLOOMBERG
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