Retail sales marginally drop in October amid Budget ‘uncertainty’

New figures by the Office of National Statistics (ONS) have revealed a slight drop in retail sales volumes in the UK throughout the month of October. According to the data, quantity bought in the region fell 0.7 percent, which comes on the back of a marginal 0.1 percent increase in the month prior.

This contrasted figures reflecting the year to October, during which sales volumes rose 2.4 percent. However, when compared with pre-Covid levels in February 2020, volumes were down 1.5 percent.

The sales volume for non-food stores for October dropped 1.4 percent following a 2.3 percent increase in September, with low consumer confidence and uncertainty around the Budget said to have impacted sales.

Clothing stores displayed the weakest performance, reporting a drop of 3.1 percent over the month, down from a growth in the previous months that had been attributed to end of season sales and improved weather. A similar decrease was seen in online sales, which fell across all main sectors at a decline of 1.2 percent.

In a statement, managing director of EMEA at Shopify, Deann Evans, said: “While October’s figures may heighten businesses' cost fears, there’s reason to believe sales may remain positive in the run up to Christmas to help weather this.

“For instance, our Holiday Retail Report reveals that over half (57 percent) of shoppers make the bulk of their festive purchases in November and December.

“Furthermore, spending amongst UK consumers around Black Friday Cyber Monday 2024 is set to increase by 21 percent compared to last year - rising from 131.67 to 159.22 pounds on average per shopper.”