Retail sales dropped unexpectedly last month with figures returning to “lockdown” levels as shoppers delay their Christmas spending amid ongoing inflationary pressures.
The latest figures from the Office for National Statistics (ONS) show sales volumes slipped 0.3% in October following a fall of 1.1% in September.
Online retailing was the only sub-sector to report growth, with volumes edging up 0.8% in October following a fall of 2.4% in September.
ONS deputy director for surveys and economic indicators Heather Bovill said: “Retail sales fell again in October to their lowest level since February 2021 when widespread lockdown restrictions were in place.”
Food store sales fell by 0.3% last month, from being unchanged (0.0%) in September 2023.
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Non-food sales slipped 0.2% compared to September’s 2.1% drop, in part due to the wet weather towards the end of the month reducing footfall.
British Retail Consortium chief executive (BRC) Helen Dickinson said: “With consumer confidence weakening due to higher mortgage and rental costs, sales growth in October slowed.
“More expensive purchases, such as laptops and electrical appliances continued to not perform well and Christmas spend took off to a slower start as households held out for Black Friday bargains.
“Meanwhile, cosmetics and toiletries had another strong month, due to the ‘Lipstick Effect’- where the high cost of living meant people spent more on smaller indulgences.
Dickinson added that retailers’ ongoing investment to bring down prices have been put at risk as they face a £480m-a-year increase from the proposed 6.7% business rates hike from April next year.
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People are broke. The Gov is done for and the bond markets are inverting.
Watch Japan, and watch the US T Bonds. The market is the power. Once the bond market refuses to swallow more debt it will reprice higher to defend currency runs. Then you will have rates so high you will cry.