UK retail sales edged up by 0.6% in October, but fashion lagged behind as the mild weather delayed winter purchases.

The UK retail sales rise in October 2024 showed a slower pace than the previous year’s 2.6% growth and was below the three-month average growth rate of 1.3%, according to the latest BRC-KPMG Retail Sales Monitor.

In contrast to fashion’s drop, beauty products performed strongly, buoyed by robust demand for seasonal items like beauty advent calendars.

Non-food sales dipped 0.1% in the same period, though this was an improvement over last year’s decline of 1.0% whilst online non-food sales rose slightly by 0.4%, with an online penetration rate of 36.9%.

Despite a solid start to autumn, consumer uncertainty, mild weather, and a delayed half-term appeared to dampen spending, with mixed results across sectors.

The recent UK budget introduced over £5bn ($6.4bn) in new costs for retailers, covering increased Employer National Insurance, Business Rates, and an uplift in the National Living Wage.

British Retail Consortium (BRC) chief executive Helen Dickinson expressed concerns that these added expenses may strain retailer margins, reduce investment, and impact overall growth.

“After a painful Budget for retailers, the hope is it will be less painful for households in the immediate term and consumer appetite will pick up in time for the Black Friday sales and festive season,” said Dickinson.

KPMG’s UK head of consumer, retail & leisure, Linda Ellett, agreed that the delayed half-term, Black Friday anticipation, and budget uncertainty have impacted October’s figures but remains optimistic that retailers can regain momentum with Black Friday promotions.

Ellett added: “With clarity now provided by the Budget and many households escaping paying increased tax from their wages, retailers will be hoping for an upturn in consumer confidence and spending. Any positivity from retailers though will of course be dampened given the increased employment costs that they face.”

By Just Style