UK annual retail sales growth slows to 2.3% in September

The UK's annual retail sales growth decelerated in September ahead of the UK government budget due late November, data published by the British Retail Consortium and KPMG showed Tuesday.

UK annual total retail sales growth slowed to 2.3% in September from 3.1% in August, but was better than growth of 2.0% in September 2024.

Food sales growth decelerated to 4.3% in September from 4.7% in August, while beating September 2024's figure of 2.3%.

Non-food sales were up 0.7% in September, down from 1.8% in August and lower than 1.7% in September 2024.

Helen Dickinson, chief executive of the British Retail Consortium said: "With the budget looming large, and households facing higher bills, retail spending rose more slowly than in recent months.

"Milder weather meant shoppers delayed refreshing autumn and winter wardrobes and growth in food sales was largely inflationary rather than volume growth. Meanwhile, electrical sales were buzzing thanks to the release of the new iPhone and Apple Watch."

She added: "Rising inflation and a potentially taxing budget is weighing on the minds of many households planning their Christmas spending. Retailers also face difficult decisions about investment and hiring over the Golden Quarter given uncertainty over business rates bills arriving in April.

"The future of many large anchor stores and thousands of jobs remains in jeopardy while the Treasury keeps the risk of a new business rates surtax on the table. By exempting these shops when the budget announcements are made, the chancellor can reduce the inflationary pressures hammering businesses and households alike."