• Retail sales down 0.2% in September
• Fuel sales up 2.9% but petrol crisis impacts turnover during shortages
• Food back in fashion but furniture spend falls flat
Danni Hewson, AJ Bell financial analyst, comments on retail sales figures for September:
“Furniture stores have been warning for months that big ticket, big size items have been caught up in the shipping crisis and that seems to have worked its way through to consumer sales. Whether the products aren’t available, the price tag is too high, or shoppers have simply finished fettling with their home décor, non food sales pulled down September’s figures.
“A return to the office as new season styles hit the shops did tempt consumers to splurge a little on their wardrobes but many of them still turned to their tablets as the preferred method of browsing and buying. Online sales ticked up slightly once again and despite increased footfall in our towns and cities, bricks and mortar stores were still unable to persuade customers that trying out new styles isn’t only for the bedroom. Shoppers want the option to try multiple sizes, they want to see how a new piece will fit into their existing wardrobes and though online sales have dropped back from their lockdown peak they’re still almost 20% higher than before the pandemic changed habits. Hybrid has become the norm which is why there’s such a push from retailers to bring in additional staff to man warehouses this Christmas season.
“As long summer nights slipped into autumn, people seem to have slipped back into another pandemic habit - to cook and eat at their own tables. Food sales have ticked back up again, possibly in response to rising prices which will leave less money for that discretionary spend.
“And those crazy days when motorists queued for hours just to get a few quid’s worth of fuel in their tanks did have the expected impact on fuel sales. Whilst sales over the month were up, garages didn’t make out like the bandits some headlines would have painted them. Turnover was subdued during the early weeks of the month; you can’t sell what you don’t have, but it picked up as supply returned to normal and nervous drivers made sure they kept tanks full just in case there was any return to earlier madness.
“Overall, the slight dip in sales might not seem too concerning, but there are questions about whether the downward trend will continue because of price pressures and a consumer nervous about their budget. This Christmas was supposed to be the big blow out, a celebration that made up for last year’s disappointment and excess spend that made up for months of closure. There will be some retailers who’d banked on the extra spend and who will be keeping everything crossed that the soundtrack to festivities will be full of ringing tills.”
