Over the five weeks from 31st August to 4th October, the British Retail Consortium (BRC) reported a rise in food sales on the year.
UK total retail sales increased by 2.3% year-on-year in September, against a growth of 2% in September 2024. This was above the 12-month average growth of 2.1%.
Food sales increased by 4.3% on the year in September, against a growth of 2.3% in September 2024. This was above the 12-month average growth of 3.4%.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: “With the Budget looming large, and households facing higher bills, retail spending rose more slowly than in recent months. Milder weather meant shoppers delayed refreshing Autumn and Winter wardrobes and growth in food sales was largely inflationary rather than volume growth.
“Rising inflation and a potentially taxing Budget is weighing on the minds of many households planning their Christmas spending. Retailers also face difficult decisions about investment and hiring over the Golden Quarter given uncertainty over business rates bills arriving in April.
“The future of many large anchor stores and thousands of jobs remains in jeopardy while the Treasury keeps the risk of a new business rates surtax on the table. By exempting these shops when the Budget announcements are made, the Chancellor can reduce the inflationary pressures hammering businesses and households alike.”
Sarah Bradbury, CEO of the Institute of Grocery Distribution (IGD), commented: “Shopper confidence remained muted in September, with some tentative positive signs. These were driven by young, affluent Londoners who are more confident in their financial outlook and prioritise quality over cost saving.
“Grocery value growth maintained strong year-on-year increases in September, driven by food price inflation, which remains stubbornly high. Grocery volumes continued to be sluggish with household budgets under pressure, following the steady inflation rise since the start of the year.
“Despite grocery retailers announcing early price reductions to support budget-conscious shoppers, ongoing speculation surrounding Autumn Budget announcements may temper shopper sentiment ahead of the festive period.”
