UK retailers gross sales development sinks to new post-COVID low

LONDON (Reuters) – British retailers final month noticed their slowest gross sales development since retailers reopened after COVID-19 lockdowns as shoppers reined in spending amid a worsening cost-of-living crunch, a survey from enterprise advisory agency BDO stated on Friday.

It stated whole like-for-like gross sales in September elevated by 2.8% year-on-year.

That final result adopted an increase of three.6% in August, which was the earlier lowest post-COVID efficiency.

“The precise efficiency for retailers could also be even worse than these outcomes recommend. With rising inflation, information means that the precise quantity of gross sales is down considerably whereas it’s increased costs that’s driving the expansion,” Sophie Michael, BDO’s head of retail and wholesale stated.

BDO famous that gross sales development within the closing week of September dipped to 1.33%.

It additionally highlighted a disappointing month for the homewares sector, the place whole like-for-like gross sales fell 6.3%.

“Having spent important sums refreshing their residing areas throughout COVID-19 lockdowns, many shoppers at the moment are doubtless tightening their belts and suspending larger single purchases,” it stated.

Confidence amongst Britain’s consumers sank to a file low final month as they battle with hovering inflation – even earlier than the federal government’s new financial plan despatched mortgage charges surging and sparked fears of a pointy drop in home costs.

UK employees wages are failing to maintain tempo with inflation that reached 9.9% in August.

A number of British retailers together with Tesco (OTC:), Subsequent and Primark have not too long ago minimize their revenue outlooks.