Retail sales cool sharply as curtains close on prolonged summer boost
Retailers suffered a sharp sales downturn in October, as the UK’s prolonged summer spending spree seems to have finally come to an end.
The balance of retailers reporting year-on-year growth in sales volumes has slumped to its lowest level in six months, according to a survey out today from the Confederation of British Industry (CBI).
Some five per cent more retailers witnessed an annualised rise rather than a fall in sales volumes during October, dropping from a net balance of 23 per cent in September and a nine-month high of 32 per cent in June.
Despite the figures suggesting that internet retail sales were at their strongest since the start of 2017, lower demand for goods such as furniture, carpets, hardware & DIY all dragged down the country’s retail performance.
“Retail sales have begun to cool, as the boost from the summer heatwave and World Cup celebrations fades away. It’s clear the challenges facing the retail sector are significant. The double whammy of the sluggish recovery in household incomes and digital disruption is making trading conditions tough, and prompting a deeper structural shift in business models," according to Alpesh Paleja, CBI's principal economist.
The figures also follow on from recent figures from the Office for National Statistics (ONS) that showed retail sales volumes had fallen back 0.8 per cent month-on-month in September after gains in August and July.