Slow start to peak sales season
October 10, 2023
Consumers are limiting spending on big ticket items such as flooring and furniture as the cost-of living crisis continues to bite, according to latest data from the British Retail Consortium (BRC).
The research backs up anecdotal reports in the flooring trade that September was slow and that October has seen a sluggish start despite the usual ramp up in interiors spending pre-Christmas.
Helen Dickinson, Chief Executive of the BRC, said: “Big ticket items such as furniture and electricals performed poorly as consumers limited spending in the face of higher housing, rental and fuel costs. With sales volumes down, growth has been artificially boosted by high inflation over the last two years. As inflation eases, so too will longer-term sales growth prospects. The coming months are crucial for retailers as they enter the Golden Quarter."
Non-food sales decreased 1.2% on a total basis over the three-months to September. This is below the 12-month average growth of 0.6%. For the month of September, Non-food was in decline year-on-year says the BRC.
Paul Martin, UK Head of Retail, KPMG, said: “Retail sales continued to limp along and this is likely to be one of the most important golden quarters that we have seen in years, as for some in the sector, it could very much determine their future.”
But he has some optimism for the period. "With the warmer weather delaying household heating being switched on, positive news around falling inflation and a hold on rising interest rates, consumers will hopefully be feeling a bit more confident," he said.
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