"These results will be seen as a positive trend as we move into the critical golden quarter, particularly given the exceptionally tough economic backdrop. However, the timing of the Budget, two days before Black Friday, could have significant implications for the retail sector. Retailers were caught out last year with the higher-than-expected NIC hikes combined with the impact that the Budget had on consumer confidence."
"Reports elsewhere also suggest that there are reduced orders being placed with suppliers as retailers fret over the level of spending. At the same time, consumers will be approaching their spending choices with caution; the speculation and noise around the Chancellor's Budget may cause the shopper to tighten their belts. Depending on the outcome, December will be critical to the Christmas trading results."
Total like-for-like retail sales in discretionary categories (fashion, homewares and lifestyle) rose 3.1% in September versus a 4.7% base in September 2024. In-store sales increased by 3.7%, one of the strongest monthly performances this year and following August's positive result. Online sales grew by 3.0%, markedly below the 11.6% online growth a year earlier. Both in-store and online growth rates were below inflation, implying a decline in sales volumes year-on-year. Budget timing two days before Black Friday risks deferring investment, reducing supplier orders and suppressing consumer spending, making December critical for Christmas trading outcomes.
Read at London Business News | Londonlovesbusiness.com
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