The tracker found that total like-for-like (LFL) sales increased by +2.8 per cent compared to September 2021, with homeware sales falling by -6.3 per cent, signalling consumers are postponing large purchases. Additionally, online sales slumped by -2.5 per cent, the second consecutive negative result.
Inflation, economic crises, and a bank holiday have combined to push retail sales figures to a new post-COVID low, with the September figures following on from a similarly poor set of results in August, which was the previous lowest post-COVID performance for retail sales.
September began with total LFLs recording an increase of +3.88 per cent, compared to +19.59 per cent for the equivalent week last year. Growth then peaked in the second week of the month at +4.86 per cent compared to the same week in September 2021. However, the second half of the month saw a significant decline, with sales growth of just +2.76 per cent and +1.33 per cent in the third and fourth weeks, respectively.
September marks 19 consecutive months of positive total LFL sales figures for the fashion sector, with a rise of +6.7 per cent from a base of +32 per cent. However, at a time when retailers would normally expect shoppers to be spending on their autumn and winter wardrobes, this disappointing result reflects heightened consumer caution when it comes to discretionary spending.
Total LFL sales for the lifestyle sector increased by +1.2 per cent in September, compared to +14.2 per cent in September 2021. These results are even lower than those recorded in August, which was the sector’s previous worst performance since stores reopened in February 2021.
September was also a disappointing month for the homewares sector, where total LFL sales fell by -6.3 per cent from a base of +7.9 per cent. Having spent significant sums refreshing their living spaces during COVID-19 lockdowns, many consumers are now likely tightening their belts and postponing bigger single purchases.
Sophie Michael, head of retail and wholesale at BDO LLP, said following a poor set of results for August, many would have been hoping for a stronger September.
“While the overall like-for-like is not quite going backwards across all discretionary spending categories, it’s clear that it’s trending downwards,” Ms Michael said.
“September has clearly not provided the much-needed boost as we head into the final three months of this year, which is critical for most retailers, and particularly for those in the discretionary spend categories.
“The actual performance for retailers may be even worse than these results suggest. With rising inflation, data suggests that the actual volume of sales is down significantly, while it is higher prices that is driving the growth. In addition, with the pound’s current level against the US dollar and euro, retailers that rely on imports are paying more for their products, eating into already slim margins. The one bright spot is that with the pound’s weakness, the UK becomes an attractive destination for overseas tourists doing their Christmas shopping. However, this is unlikely to provide much of a boost to retailers beyond flagship stores in major cities.”
