By Ian McConnell
RETAIL sales in Great Britain fell unexpectedly in September – the fifth consecutive monthly drop – official figures show.
The Office for National Statistics said yesterday that retail sales volumes fell 0.2% month-on-month in September on a seasonally adjusted basis.
Stripping out the effect of a 2.9% leap in automotive fuel sales, during a month in which motorists flocked to petrol stations amid reports of shortages, retail sales volumes declined by 0.6%. Economists had forecast a 0.2% rise in this measure of retail sales in a Reuters poll, so the data were much weaker than expected.
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The ONS flagged a 9.3% month-on-month drop in sales volumes for household goods stores, which include furniture and lighting outlets.
Overall, non-food store sales volumes, which reflect more discretionary elements of spending, dropped by 1.4% month-on-month in September.
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Retail sales volumes in September were down 1.3% on a year earlier. However, the ONS noted they were up by 4.2% on their pre-pandemic level in February last year.
Danni Hewson, financial analyst at stockbroker AJ Bell, said: “Furniture stores have been warning for months that big-ticket, big-size items have been caught up in the shipping crisis and that seems to have worked its way through to consumer sales. Whether the products aren’t available, the price-tag is too high, or shoppers have simply finished fettling with their home decor, non-food sales pulled down September’s figures.”
She added: “Overall, the slight dip in sales might not seem too concerning, but there are questions about whether the downward trend will continue because of price pressures and a consumer nervous about their budget. This Christmas was supposed to be the big blowout, a celebration that made up for last year’s disappointment and excess spend that made up for months of closure. There will be some retailers who’d banked on the extra spend and who will be keeping everything crossed.”
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