In October, UK retail sales decreased by 1.0% on a like-for-like basis from October 2016 when they had increased 1.7% from the preceding year, according to the British Retail Consortium (BRC) KPMG sales monitor for the period covering October 1-28, 2017.

On a total basis, sales rose 0.2% in October against a growth of 2.4% in October 2016. This is the lowest growth since May and below the three- and 12-month averages of 1.7% and 1.5% respectively.

Over the three months to October 2017 In-store sales of non-food items declined 2.2% on a total basis and 2.9% on a like-for-like basis. On a 12-month basis, the total decline was 2.1%, the deepest since BRC records began in January 2012.

Over the three-months to October, non-food retail sales in the UK decreased 0.4% on a like-for-like basis and increased 0.1% on a total basis, below the 12-month total average growth of 0.2%, which is the lowest since we started measuring Non-Food in January 2011.

Online sales of non-food products grew 4.0% in October, below both the three- and 12-month averages of 8.7% and 8.3% respectively. Online it was the lowest growth since BRC records began in December 2012. Online penetration rate increased from 22.6% in October 2016 to 23.7% in October 2017, the highest penetration rate since December 2016.

“It was a meagre month in October for retail sales as shopping activity slumped,” said BRC chief executive Helen Dickinson. “With total growth at its lowest since May and below the 12-month average, retailers will have cause for concern as they prepare for the crucial run up to Christmas.

“The decline was driven by the worst performance of non-food sales since our record began in January 2011, as consumers appear to have opted for outdoor experiences and excursions during half term over visits to the shops.

“Real consumer spending power has been on a downward trend in the last year as the acceleration in inflation has caused shoppers to become ever more cautious in considering what purchases they can afford. Many now face higher borrowing costs, given the rise in interest rates which will only serve to heap further pressure onto household finances.

“Considering the intrinsic link between consumer spending and economic growth, the Chancellor should reflect on this disappointing state of play and deliver a budget that allays the risks of a further slowdown in consumer spending, by keeping down the cost of living.  In other words, a shoppers budget.”

 “With the Bank of England’s interest rate decision seeing the first hike in 10 years, we are likely to see a continuation of the sector's slow-down, with consumers having less disposable income to spend,” commented KPMG head of retail Paul Martin.