Total retail sales grew by +4.7% compared to September last year, however, this growth was propelled by +11.6% online sales as high street stores continue to struggle.
Sophie Michael highlighted that while online sales have surged due to aggressive discounting, it has resulted in retailer margins being under intense pressure, particularly as they prepare for autumn and winter.
Michael cautioned that the rising reliance on discounted online sales to drive growth is not sustainable, as high return levels will impact retailers' bottom lines adversely.
As Christmas approaches, shoppers may prioritize experiences over products, leading to increased competition for discretionary spending between retailers and other sectors like hospitality.
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