You are here: Home - Household Bills - News -

Retail sales rise driven by higher prices

Written by:
UK retail sales increased by 1.9% in September year-on-year, fuelled by higher prices for food and clothing. This is a significant leap from the 0.4% growth seen last year.

Over the three months to September, food sales increased 2.5% on a like-for-like basis and 3.5% on a total basis. This is the highest 12-month average since August 2013, but it has been fuelled by higher prices rather than stronger demand.

Helen Dickinson, chief executive, British Retail Consortium, said:Looking beneath the surface… we see that much of this growth is being driven by price increases filtering through, particularly in food and clothing, which were the highest performing product categories for the month.

“Retailers have worked hard to keep a lid on price rises following the depreciation of the pound, but with a potent mix of more expensive imports and increasing business costs from various government policies, something had to give at some point.”

Dickinson said that spending is still concentrated on essential purchases; with consumers buying their winter coats and back to school items, but shying away from big ticket items such as furniture and delaying the renewal of key household electrical goods. There were some signs of weakness in discretionary spending. Over the three months to September 2017, in-store sales of non-food items declined 1.5% on a total basis and 2.0% on a like-for-like basis.

She added that online sales had been the biggest beneficiary of the resilience in consumer spending capacity in the last two months as shoppers responded well to discounts and the ongoing investment by retailers in improving the mobile shopping experience.

Online sales continue to outpace in-store sales. Online sales of non-food products grew 10.7% in September, above both the three-month and 12-month averages of 10% and 8.8% respectively. Online penetration rate increased from 21.5% in September 2016 to 22.4% in September 2017, the highest penetration rate since January.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @Defaqto: There are significant differences between precisely what Covid-19 cover different travel insurance policies offer, our latest…
  • RT @YourMoneyUK: New infrastructure bank based in Leeds #Budget2021
  • RT @YourMoneyUK: Corporation tax for companies with profits under £50,000 will remain at 19%, meaning only 10% of companies will pay the hi…

Read previous post:
London property
Gazumping hits one in ten UK property purchases

One in ten property purchases has fallen through due to a seller accepting a better offer from someone else despite...