The Office for National Statistics (ONS) said retail sales fell by 2.4% in the quarter compared with the previous three months, with volumes in September and October falling below pre-pandemic levels for the first time. It is the worst quarterly sales performance since March last year, when coronavirus restrictions hit retailers, and shows the dramatic deterioration in spending as the UK slips into recession. Month-on-month, retail sales rose 0.6% in October, but the ONS warned this was likely to reflect a recovery from September, when sales fell 1.5% as many shops closed on the day of her funeral Queen. “Looking at the bigger picture, retail sales continue their downward trend seen since the summer of 2021 and are below where they were before the pandemic,” said Darren Morgan, director of economic statistics at the ONS. According to the latest data, grocery store sales fell 1% in October and remain 4.1% below their pre-pandemic levels, as budget-conscious consumers cut back on spending amid soaring prices and cost of living crisis. The figures come as Chancellor Jeremy Hunt’s austerity budget on Thursday prompted the Office for Budget Responsibility, the government spending watchdog, to say people in Britain are facing the biggest drop in living standards since records began. Sales volumes for home goods stores fell 4% last month and remain nearly 12% below pre-pandemic levels, as consumers continue to shy away from spending on big-ticket items such as furniture. However, non-food store sales rose 1.1% month-on-month in October, but remain 1.7% below pre-pandemic levels, boosted by growth in thrift stores and auction house sales, as consumers are increasingly looking for bargains. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. Clothing store sales volumes rose 2.5% last month but remain 3.7% below February 2020 levels, while department store sales volumes fell 0.3% month-on-month in October. “Increase in retail sales [in October] continue to mask falling volumes as inflation continued to cause pain for both retailers and consumers,” said Helen Dickinson, chief executive of the British Retail Consortium. “There were declines in purchases of household electrical goods, while basic goods such as pharmaceuticals and footwear held up slightly better. Consumer confidence improved slightly as the political turmoil of recent months began to subside. Retailers are hoping sales will pick up a bit as the World Cup and festive season approaches, but there is little chance they will match current double-digit inflation.’
