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\t\tRetail sales slowed in September\t<\/p>\n\t\t\tTuesday 14 October 2025 12:01 am
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\t\t\tMonday 13 October 2025 3:29 pm\n\t<\/p>\n
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\t\tRetail sales slowed in September\t<\/p>\n
Retail spending slowed in September, as a tax raising Budget and higher household inflation expectations forced Brits to tighten their belts before the all-important \u2018Golden Quarter\u2019.<\/a><\/p>\n Total retail sales in September increased by 2.3 per cent year on year, down from the 3.1 per cent that the sector notched up in August and the 2.5 per cent growth enjoyed in July.<\/p>\n Non-food sales \u2013 including in categories like fashion and household appliances \u2013 slowed particularly sharply, rising by just 0.7 per cent on last September, compared with 1.8 per cent growth the previous month.<\/p>\n However, grocery sales rose by 4.3 per cent year on year, in a sign that shoppers are not cutting spending in the face of a fresh bout of inflation that has seen annual price rises hit five per cent in recent months.<\/p>\n Helen Dickinson, the chief executive of the British Retail Consortium, attributed the slowdown to a combination of \u201crising inflation and a potentially taxing Budget\u201d <\/p>\n \u201cMilder weather meant shoppers delayed refreshing autumn and winter wardrobes and growth in food sales was largely inflationary rather than volume growth,\u201d she said. \u201cMeanwhile, electrical sales were buzzing thanks to the release of the new iPhone and Apple Watch.\u201d<\/p>\n Retail bosses fear dwindling consumer confidence<\/p>\n Next month, the Chancellor is expected to unveil one of the largest tax raising Budgets<\/a> in recent history, as she attempts to plug a roughly \u00a330bn shortfall in the public finances and stay within her self-imposed fiscal rules.<\/p>\n While the Treasury has suggested it will not rehash last year\u2019s approach to tax hikes, which relied on squeezing the private sector to fund the majority of its spending pledges, industry chiefs fear households are already tightening their belts before a sharp restriction in fiscal policy.<\/p>\n Dickinson also highlighted persistent food inflation as eating into consumers\u2019 ability to spend on non-essentials. UK households have been found to be building up nest eggs at the fastest rate in the G7 \u2013 and have the lowest consumption growth \u2013 this year, in a sign many are fearful of the damage more runaway inflation could have on their savings.<\/p>\n During a speech calling for interest rates to be held for longer last week, Bank of England rate-setter Catherine Mann said<\/a> that consumers were feeling \u201cscarred\u201d by \u201cpersistently persistent inflation\u201d and a weak economic outlook. And in a sign people\u2019s parsimony may household inflation expectations are now the highest they have been since the height of the cost-of-living crisis.<\/a><\/p>\n Sarah Bradbury, chief executive of the Institute of Grocery Distribution, said: \u201cGrocery volumes continued to be sluggish with household budgets under pressure, following the steady inflation rise since the start of the year. Despite grocery retailers announcing early price reductions to support budget-conscious shoppers, ongoing speculation surrounding Autumn Budget announcements may temper shopper sentiment ahead of the festive period.\u201d<\/p>\n \t\t\t\t\tRead more<\/p>\n