Retail sales across the UK took a significant hit in October, as households grappled with soaring living costs and economic instability. According to the latest figures from the British Retail Consortium (BRC), sales dropped sharply, reflecting the growing pressure on consumer budgets.
Helen Dickinson, Chief Executive of the BRC, warned that retailers are facing a "perfect storm" of challenges, including rising energy bills, supply chain disruptions, and weakening consumer confidence. "With inflation at record highs and wages struggling to keep pace, many families are cutting back on non-essential spending," she said.
Barclays and KPMG Report Similar Trends
Barclays' consumer spending data echoed the BRC's findings, showing a marked slowdown in retail expenditure. Meanwhile, KPMG analysts highlighted that discretionary purchases, such as clothing and electronics, were particularly affected as shoppers prioritised essentials like food and utilities.
The downturn comes as Chancellor Jeremy Hunt prepares to deliver the Autumn Budget, with retailers urging the government to provide relief through business rate reforms and targeted support for struggling households.
What’s Next for UK Retail?
Industry experts predict further turbulence in the run-up to Christmas, traditionally the busiest shopping period of the year. Retailers are bracing for a challenging festive season, with promotions and discounts expected to play a key role in driving sales.
As the cost of living crisis deepens, the retail sector’s recovery will depend on broader economic stability and government intervention to ease financial pressures on both businesses and consumers.
