(Nov 11): UK retail sales growth weakened in October, the British Retail Consortium said, as shoppers held back on purchases ahead of the government’s upcoming budget and in anticipation of Black Friday deals.
Total retail sales rose 1.6% from a year earlier, below the 12-month average and the slowest since May, the BRC said Tuesday (Nov 11). Like-for-like sales growth slipped to 1.5% from 2% in September. The subdued pace was driven by non-food spending, with essentially no growth in sales of toys, electronics and clothing.
The data bolster the sense of an economy in a holding pattern ahead of Chancellor of the Exchequer Rachel Reeves’ Nov 26 budget statement, which is expected to include tax rises as she tries to rebuild stretched public finances. Black Friday is two days later, though promotions typically begin earlier.
UK grocers including Tesco plc and J Sainsbury plc signed a letter to Reeves last month warning that households would “inevitably feel the impact” of any tax increases, such as higher business rates for supermarkets.
“Retailers are counting on Black Friday to deliver a vital boost but looming budget decisions risk undermining fragile consumer confidence,” BRC CEO Helen Dickinson said in a statement.
Growth in food sales held up better last month, with total sales up 3.5% and like-for-like sales up 3.1%. Still, that was mostly driven by higher prices rather than higher volumes, according to the BRC.
See also: JPMorgan to build new London HQ in Canary Wharf
Uploaded by Arion Yeow
