No back-to-school boost for UK retail sales
Summer's surge for many retailers ended ended abruptly last month, industry research revealed on Tuesday.
Like-for-like sales values were down 0.2% in September compared to the same month last year, slowing from the 0.2% growth in August, according to the monthly BRC-KPMG retail sales monitor. Economists had expected a flat month.
Total year-on-year sales growth, which includes the impact of new store openings, remained in positive territory but softened to 0.7% from 1.3% in August and an increase of 2.3% last September, versus a 12-month average of 1.3%. Ignoring the impact of Easter timing, this is the worst performance since last October.
Overall non-food sales were down 0.6% in the three months to September and 1.6% on a same-store basis. In-store sales for non-food shops were down 2.7% over the three months and on a LFL basis were 4.0% lower.
Food sales swelled 3.4% in the three month period and 2.3% on a LFL basis.
Online sales of non-food products grew 5.4% in September, which is the lowest growth since January and versus a 12-month average of 7.1%. Online penetration rate increased from 22.7% to 24.2% in September.
Paul Martin, UK Head of Retail at KPMG, said non-food categories continued to disappoint. "The historically reliable back-to-school push did not elevate apparel sales. Instead the latest tech launches were a rare source for optimism."
“Online retail continued to fare better. Even clothing sales managed to grab the attention of those browsing the web to refresh their wardrobe."
Looking ahead to the coming months, he said: “The final golden quarter of the year marks the ultimate test for many players, but retailers must also successfully navigate: the upcoming government Budget, Black Friday, Christmas, and of course Brexit.”