Retail sales growth slows as Budget uncertainty and weather delay spending

Total retail sales growth was 2.3% year on year during the month, which was still above the 12-month average of 2.1%, the BRC-KPMG Retail Sales Monitor revealed.

While food sales were ahead 4.3% – also above the 12-month average of 3.4% – non-food was up 0.7%, below the 12-month average of 0.9%.

The proportion of non-food items bought online edged up 37.6% versus 37.2% in September 2024.

BRC chief executive Helen Dickinson said: “With the Budget looming large, and households facing higher bills, retail spending rose more slowly than in recent months.

“Milder weather meant shoppers delayed refreshing Autumn and Winter wardrobes and growth in food sales was largely inflationary rather than volume growth. Meanwhile, electrical sales were buzzing thanks to the release of the new iPhone and Apple Watch.

“Rising inflation and a potentially taxing Budget are weighing on the minds of many households planning their Christmas spending. Retailers also face difficult decisions about investment and hiring over the golden quarter given uncertainty over business rates bills arriving in April.

“The future of many large anchor stores and thousands of jobs remains in jeopardy while the Treasury keeps the risk of a new business rates surtax on the table. By exempting these shops when the Budget announcements are made, the chancellor can reduce the inflationary pressures hammering businesses and households alike.”