'Encouraging' pre-Christmas sales for October
Published: 6 November 2013
The British Retail Consortium has reported an "encouraging" sales pick up for October this year; total UK sales were up 2.6%, against a 1.1% increase in October 2012.
The latest BRC-KPMG Retail Sales Monitor showed like-for-like sales in October were up 0.8% on last year, when they had decreased 0.1% on 2011. The report said the three-month average total growth, at 2.8%, is "much closer aligned to the 12-month average of 2.7%, suggesting a more sustainable level has been reached."
It added that "strong growth" in non-food sectors "points to an encouraging start to the festive season." Online sales of non-food products in the UK grew 12.1% in October against a year earlier and the online penetration rate was 18.3%, "the highest level ever recorded by our Monitor over 23 months", the report said.
The BRC's director general, Helen Dickinson, said: "It's encouraging to see growth heading in the right direction again after a disappointing slowdown in September. Much of the improvement was driven by sustained demand and there was also a strong showing for home accessories and textiles.
"Consumer confidence paused in October, and while conditions remain challenging, the signs are that customers are managing their budgets well while allowing some leeway for occasional treats. Retailers will be looking to respond to this appetite for good value with a little luxury here and there in their promotions and product offerings for the Christmas period."
Head of retail at KPMG, David McCorquodale, added: "The next two months are vital with stock holdings, merchandising and margins being key to success. The pressure is on retailers to kick start sales, without the need to heavily discount. Christmas has always been retailers' golden goose and a good performance in the next two months will help those in the red move back to the black."