Deloitte comments on ONS retail sales

Commenting on today’s ONS retail sales figures, Kelly Miely, retail partner at Deloitte, said:

“High inflation weighed heavily on consumer spending power and contributed to a fall of 1.4% in both sales values and volumes in September.

“The expected sales lift from the return to school did not materialise, with non-food sales volumes falling 0.6% on the previous month, a marked 2.7% below pre-pandemic levels. Leisure activities outside of the home are increasingly becoming a luxury many are deciding to do without as they choose to stay in to help save money.

“Similarly, in a sign that consumers are making conscious cuts to their spending on groceries, food sales volumes were down 1.8%. With consumers becoming more price-sensitive, they are making difficult trade-offs, for instance choosing cheaper brands of goods or stores or simply doing without.

More promotional activity

“Affordability will be on consumers’ minds as they start to think about festive celebrations this year. This will mean many consumers looking to buy more of their Christmas shopping on promotions compared to last year.

“A more competitive promotional retail environment could intensify in the run up to the festive season as spending continues to weaken. Retailers will be looking to Black Friday as an opportunity to attract a thriftier consumer.”

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