Official figures have shown that shoppers spent less on both fuel and food in October. The Office for National Statistics reported that last month, the volume of products sold fell by 0.3%, marking the lowest level since February 2021, a period when much of the UK was in Covid-19 lockdowns. Heavy rain caused by Storm Babet also contributed to the decline in retail sales. Demand for petrol and diesel was hit particularly hard by increasing fuel prices. Other goods were affected too, while sales of alcohol and tobacco dropped by 4.2% and 10.4% respectively.
Heather Bovill, Deputy Director for Survey and Economic Indicators at the ONS, stated that the month was “another poor” one for household goods and clothes stores, with these retailers “reporting that the cost of living pressures, reduced footfall and poor weather hit them hard.” Specialist stores, such as butchers and bakers, also reported a decline in sales compared to supermarkets, where shoppers bought more food. Retailers noted that customers were prioritising important items and purchasing cheaper products instead.
Compared with October 2020, sales volumes were down by 2.7%. The ONS also recently revised down its reading of retail sales for September to a drop of 1.1% after having initially estimated a decline of 0.9%. The weaker October figures were surprising as retail sales were widely expected to grow. Retailers hope shoppers will spend more on Christmas gifts and during the crucial trading periods surrounding the holiday period.
Aled Patchett, Head of Retail and Consumer Goods at Lloyds Bank, said that despite headline inflation easing in recent months, another dip in sales suggests that the rising cost of living remains at the forefront of consumer consciousness. Households are continuing to prioritise essential spending, particularly with the onset of colder weather pushing up energy use
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