Retail sales in September saw their biggest growth since January, with footfall also increasing for the first time in over a year, according to the latest figures from the Office of National Statistics (ONS).
Looking at the whole year up until September 2024, sales volumes rose by 3.9% – their largest annual rise since around February 2022. Month-to-month sales volumes rose by an encouraging 0.3% from August to September, following the positive trend from the 1% increase the month before.
Analysing the quarterly period as a whole, the retail sector enjoyed a 1.9% rise in sales volumes from July to September when compared with the previous three-month period. Compared to the year-on-year quarterly results, 2024’s figures are up, as there was a 2.6% over last year’s figures from the same time.
Total UK footfall increased by 3.3% year-on-year in September as well, in what is said to be the first footfall increase in over a year.
Helen Dickinson, chief executive of the British Retail Consortium, welcomed the increase, saying: “Mild temperatures combined with weak footfall last year led to strong growth in September. It was neither too hot nor too cold for customers, leaving retailers in the sweet spot for additional shopping trips. This compared positively to last year when the intense heatwave caused many people to stay home and delay purchases of autumnal clothes and products.”
Sales of non-food retail items (such as sales by KBB retailers), rose by a total of 2.5% in September. Online spending also reportedly increased by 1.3% in the month, which is up by 6.7% year-on-year over September 2023’s figures.
Kris Hamer, director of insight at the British Retail Consortium (BRC) commented: “September saw the strongest retail sales growth since January, and the highest sales volume since March 2022. This was thanks to areas such as clothing and computing performing particularly well, as autumn led people to upgrade their wardrobe as well as the last-minute student dash for new computers as the new academic year began.
However, Hamer added that big ticket items such as furniture and household goods could not be performing as well as clothing or technology because some consumers are likely saving for the Christmas period, or spending their money on experiences instead.
Hamer cautiously continued: “While the growth in sales is welcome, retailers are nervously waiting for the Budget to see if they are going to be whacked by more costs, particularly trailed changes to Employer National Insurance contributions, as well as the inflationary increase to business rates coming next year.”
Earlier this month, the BRC helped co-ordinate a letter signed by more than 70 leading retail CEOs, asking the UK chancellor, Rachel Reeves, for a significant change to business rates paid by retailers.
