In September, UK retail sales exceeded expectations, energised by a substantial demand for technology, even as overall growth decelerated.
- The latest data from the Office for National Statistics showed retail sales volumes increased by 0.3% in September.
- Sales in technology and telecommunication sectors surged by over a third, counterbalancing a 2.4% decrease in supermarket sales.
- Year-on-year, retail sales saw a significant rise of 3.9%, the largest since February 2022.
- Cooler weather supported a 2.5% increase in non-food sales as consumers updated their seasonal wardrobes.
In a surprising turn of events, UK retail sales rose by 0.3% in September, defying earlier forecasts of a decline. This modest growth in retail sales is attributed primarily to a robust demand in the technology and telecommunications sectors. With innovations and new products being launched, these sectors experienced an increase in consumer purchasing activity.
The latest findings from the Office for National Statistics have placed retail sales volumes at their highest levels since July 2022. The burgeoning interest in new technology, exemplified by the release of Apple’s iPhone 16, significantly counterbalanced the decline in supermarket sales, which dipped by 2.4%.
Furthermore, compared to the same time last year, there was a year-on-year jump of 3.9% in retail sales. This marks the most substantial annual increase since February 2022, painting a promising picture for the retail sector amidst economic uncertainties.
The arrival of cooler temperatures in September motivated shoppers to purchase new clothing and footwear, contributing to a 2.5% rise in non-food sales volumes. Consumers were keen to refresh their wardrobes as they prepared for the changing seasons.
According to Kris Hamer, the British Retail Consortium’s director of insight, the arrival of autumn prompted consumers to upgrade their wardrobes and facilitated a last-minute rush for student-related purchases like computers as the academic year commenced. Despite this, high-cost items such as furniture continued to face challenges, owing to customers prioritising savings for upcoming festive expenditures or opting for experiential spending.
September’s retail dynamics highlight a strong demand for technology amidst shifting consumer priorities.
