Call 0800 644 6080 (From Mobile 0333 009 0010)
Call 0800 644 6080 (From Mobile 0333 009 0010)

Non-food Sales Show Record Low Growth as Retail Data Disappoints

Licensed UK Insolvency Practitioners FREE Meeting for Company Directors We can help with serious company debts, HMRC and creditor pressure, VAT/PAYE/Tax arrears, cashflow problems and raising finance.

Non-food Sales Show Record Low Growth as Retail Data Disappoints

Written by: Keith Tully
Date: Tuesday 7th November, 2017

Sales of non-food products among retailers across the UK showed a record low level of growth in the year to October 2017.

slow growthAccording to the British Retail Consortium (BRC), non-food sales increased by just 0.2 per cent in the 12 months to the end of October, which is a slower pace of growth than any recorded since the category first came to be measured as it is in January 2011.

Overall sales levels among retailers across the country rose by 0.2 per cent in October, which marks a notable slowdown of growth compared with the figure of 2.4 per cent recorded for the same month of 2016.

The value of food sales reportedly increased by 2.4 per cent on a like-for-like basis in the three months to the end of October this year but the BRC describes those increases as having been “very much buoyed by inflation”.

“Real consumer spending power has been on a downward trend in the last year as the acceleration in inflation has caused shoppers to become ever more cautious in considering what purchases they can afford,” said Helen Dickinson, chief executive of the BRC.

“Considering the intrinsic link between consumer spending and economic growth, the chancellor should reflect on this disappointing state of play and deliver a Budget that allays the risks of a further slowdown in consumer spending, by keeping down the cost of living. In other words, a shoppers Budget.”

Paul Martin from KPMG, who helped the BRC put together its latest set of figures, noted that sales among clothing retailers across the UK were particularly disappointing during October.

Warmer than expected weather in recent months has been given as one potential reason why clothing sales have been subdued but various economic factors are also understood to be restraining consumer spending nationwide.

“The burning questions for retailers will be whether shoppers are holding off their purchases until Black Friday, and whether retailers can recover from this month’s poor performance to end the year on a high,” said Mr Martin.

KPMG’s head of retail also described the latest snapshot of sales across the UK’s retail sector as being a “real disappointment” and “not the start to the golden quarter retailers had hoped for”.

Keith Tully

Keith Tully

Join Keith Tully on Linked In Join Keith Tully on Google Plus Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts

Contact our team

Jonathan Munnery
Andrew MacKenzie
Julie Palmer
Thomas Mckay
Keith Tully
or find your nearest office

If You've Enjoyed This Article or Found it Interesting, 'Please Share it' With the Rest of the World!

Every day we help companies just like yours turn things around against seemingly impossible odds, regardless of your situation we can help. Find your nearest office today.