UK annual retail sales growth slows to 1.6% in October ahead of budget

The UK's annual retail sales growth decelerated in October ahead of the UK government Budget and Black Friday later this month, data published by the British Retail Consortium and KPMG showed Tuesday.

UK annual total retail sales growth slowed to 1.6% in October from 2.3% in September, but was better than the growth of 0.6% in October 2024.

Food sales growth decelerated to 3.5% in October from 4.3% in September, while beating October 2024's figure of 2.6%.

Non-food sales were up 0.1% in October, down from 0.7% in September, but better than October 2024's 1.1% decline.

The most recent figures covered the four weeks between October 5 and November 1.

Helen Dickinson, chief executive of the British Retail Consortium, said: "October was a subdued month, with the weakest growth since May. Many delayed spending, waiting for Black Friday deals and cooler temperatures before buying toys, electronics and clothing.

"Furniture and other homeware fared better as people began preparing their homes ahead of family festive gatherings. Food sales also saw good growth, but this was mostly driven by higher prices rather than higher volumes."

She continued: "Retailers are counting on Black Friday to deliver a vital boost, but looming Budget decisions risk undermining fragile consumer confidence. With demand weak and business rates unresolved, retailers face hard choices on investment and recruitment.

"A business rates surtax on retail would put major stores and thousands of jobs at risk. The chancellor should use the Budget to remove this threat and help curb inflation for businesses and families."

Linda Ellett, head of Consumer, Retail & Leisure at KPMG said: "With Black Friday sales already getting underway and Christmas displays also now up in many stores, retailers are aiming at swiftly reversing the slowdown in sales growth seen during October.

"Our own research indicates that the majority of shoppers are considering purchases over the Black Friday period, and that artificial intelligence will play a growing role in how consumers search for and find promotional offers or gifts. This tech evolution presents both challenges and benefits to retailers trying to capture these tech savvy shoppers."