- Retail sales grew 0.3% in September
- New product launches boosted tech takings which helped offset falling supermarket sales
- Poor weather helped to swell online sales
Danni Hewson, AJ Bell head of financial analysis, comments on the latest retail sales figures:
“September’s sales figures bode well for retailers now intently focused on the run up to Christmas.
“Although shoppers are still paying close attention to their budgets, they are prepared to splash out on big ticket items like the new iPhone. It’s all about choices and making their money stretch in different directions.
“Supermarkets might have lost ground over the month but they’re likely to hear their tills ring more frequently in October as households start to splash on festive treats that they can squirrel away at the back of cupboards.
“Confidence is going to be crucial and whilst the Budget is currently the focus of many households’ attention, falling inflation and borrowing costs should start to make people feel a little better about their own financial situations.
“Although energy costs have gone up, people haven’t really been overly troubled with their thermostats so far this year. Of course, losing winter fuel payments will leave many pensioners rejigging their household budgets, but knowing the state pension will increase by 4.1% in April may offer a little relief.
“The weather, as always, will play a big part in our spending decisions over the ‘golden quarter’, not least to help determine if we hit the high streets or make our purchases from the comfort of our dry living rooms.
“September’s unseasonal shocks changed eating habits and helped gave a little boost to online retailers. The rainfall also impacted farmers which could lead to inflationary pressures down the line.
“People have become smarter than ever with their spending decisions. They want the best prices but it seems they’re also willing to loosen the purse strings if there’s something they really, really want.”
