Sales dip in October as consumers practice caution ahead of Budget

In the UK, new figures from the Office for National Statistics (ONS) have shown a drop in sales volumes during October, with figures falling 1.1 percent on the month prior. Compared to October last year, sales volumes rose 0.2 percent.

Performance was stronger over the three months to October. During this period, sales volumes rose 1.1 percent compared to the three months to July 2025. ONS said clothing stores were among those to have “rounded off a strong performance in those three months, peaking in September”, ushering in a 4.9 percent uptick in sales.

Clothing and textile stores saw a sharp drop on a monthly basis, however, reporting a 3.3 percent decline in sales. Retailers told ONS that consumers held back in preparation for Black Friday discounts.

In a statement to FashionUnited, Erin Brookes, European retail and consumer lead at Alvarez & Marsal, also noted that the setback comes ahead of the festive season, with consumers “taking a more cautious approach”, particularly as a sense of nervousness hangs over the government’s incoming Autumn Budget, due for release November 26.

Online spending dropped 0.8 percent month-on-month and, compared to October 2024, fell 4.8 percent. Again, figures were more promising over the three months, rising 3 percent in contrast to the three months prior. This then increased 5.1 percent compared to the three months to October last year.

Overall sales volumes remained below their pre-coronavirus level in February 2020, dropping 3.3 percent.