Retail Sales Great Britain - October 2023 - Downward Trend

21st November 2023

Retail sales volumes are estimated to have fallen by 0.3% in October 2023, following a fall of 1.1% in September 2023 (revised from a fall of 0.9%).

Looking broader, sales volumes fell by 1.1% in the three months to October 2023 when compared with the previous three months.

Automotive fuel sales volumes fell by 2.0% in October 2023; in the three months to October, sales volumes fell by 0.7% when compared with the previous three months, which may be affected by increasing fuel prices.

Food stores sales volumes fell by 0.3% in October 2023, from being unchanged (0.0%) in September 2023.

Non-food stores sales volumes fell by 0.2% in October 2023, following a 2.1% fall in September 2023; retailers suggested that cost of living, reduced footfall and the wet weather in the second half of the month contributed to the fall.

Non-store retailing (predominantly online retailers) sales volumes rose by 0.8% in October 2023 following a fall of 2.4% in September 2023.

Figure 1 shows continued divergence between quantities bought (volume) and amount spent (value) in retail sales over time because of price increases.

When compared with their pre-coronavirus (COVID-19) pandemic level in February 2020, total retail sales were 16.9% higher in value terms, but volumes were 3.1% lower.

Retail sales volumes in October 2023 were at their lowest level since February 2021 when there were widespread and extensive restrictions to non-essential retail in England, Scotland and Wales.

Food stores sales volumes fell by 0.3% in October 2023, from being unchanged (0.0%) in the previous month.

Supermarkets reported an increase in sales volumes of 0.2% over the month while both specialist food stores (such as butchers and bakers), and alcohol and tobacco stores reported falls of 4.2% and 10.4%, respectively. Feedback from these retailers suggested that consumers were buying cheaper products and prioritising important items.

Total non-food stores sales volumes (the total of department, clothing, household and other non-food stores) fell by 0.2% in October 2023, from a fall of 2.1% in September 2023. Retailers suggested that cost of living, reduced footfall and the wet weather contributed to the fall.

Within non-food, most sub-sectors reported falls in sales volumes over the month. Clothing stores reported a 0.9% fall in October 2023 sales volumes. Retailers attributed this to the continued unseasonably warm weather, particularly at the beginning of the month, affecting the sale of autumn and winter wear.

Household goods stores sales volumes fell by 1.1% in October 2023, mainly because of a fall from furniture stores.

Department stores sales volumes fell by 0.1% in October 2023, with some retailers suggesting this was because of a drop in consumer confidence.

Other non-food stores was the only sub-sector to register positive growth, with sales volumes rising by 0.8% in October 2023. This was because of a partial rebound from watches and jewellery stores, following a strong fall in September 2023.

Read the full report HERE