UK retail sales unexpectedly surged to their highest level since July 2022 in September, driven by strong demand for gold online and the release of the iPhone 17. Official data from the Office for National Statistics (ONS) showed sales volumes rose by 0.5 per cent month on month, marking the fourth consecutive increase and confounding economists' expectations of a 0.2 per cent drop.
Online sales climbed for the eighth straight month, buoyed by internet jewellers reporting robust demand for gold as the safe-haven commodity rallied amid global uncertainty. Non-food stores, including department stores and clothing retailers, saw the largest rise at 0.9 per cent. Overall, total sales volumes increased by 1.5 per cent compared with a year earlier.
The ONS also revised August's monthly increase upwards from 0.5 per cent to 0.6 per cent. Despite the recent gains, sales volumes remain 1.6 per cent below their pre-pandemic level in February 2020. The September figures followed a strong summer, boosted by warm weather and the Euro 2025 women's football tournament, with volumes rising 0.9 per cent in the third quarter versus the second.
However, industry experts cautioned that the trend may not persist, citing high inflation, weakening employment and the prospect of tax rises in the upcoming Budget on 26 November. Nicholas Found, head of commercial content at Retail Economics, said shoppers are taking a cautious approach as budgets remain under pressure from essential living expenses. He warned that the Budget's timing, coinciding with Black Friday discounting and the crucial Christmas period, could intensify competition for limited discretionary spending.
