UK high street sales solid in September but October starts badly

UK retail sales were solid in September but growth remained weak amid rising prices, a consumer crunch and declining high street footfall.

Total like-for-like sales increased 2.9% in September, BDO's High Street Tracker report showed, but this was versus a decline of 2.8% in the same month last year.

A 2.9% rise was the higher year-on-year growth in September for five years and the best month for sales in more than three years, but considering the poor base BDO said the rate of growth remains fairly slow.

Lifestyle LFL sales rose 3.6% versus a base of +0.9% last year, while fashion store LFLs were up 2.7% but versus a large fall of 5.9% last September.

Homeware sales inched up 0.8% versus a strong base of 8.9% last year, which was the fifth positive month in succession for this segment, even though sales dipped into negative in the first two weeks of the month versus strong comparatives last year.

An update from BDO for the week ending 1 October showed that fashion LFL sales slumped 7.9% against a fall of 0.3% a year ago, while total retail sector store sales were down 5.2% versus a 0.4% rise a year ago. Overall online sales were up 15.5% against 28% a year ago.

Sophie Michael, BDO's head of retail and wholesale, said: “Two consecutive months of positive growth will be a welcome relief for retailers following challenges seen in autumn in prior years.

“Pulling off the best September sales growth for five years is a great result for the high street at the start of this critical trading period,” she said.

“In a month when footfall is down, positive like-for-like sales figures demonstrate that shoppers are willing to spend. The favourable weather patterns in September cannot be ignored, particularly for fashion, but this result will be encouraging for retailers as we enter the final quarter of 2017.

“Retailers will be working hard to entice shoppers whether online or on the high street, and a combination of strategic discounting, a well curated and attractive product range, and targeted promotional activity will determine the winners and losers this Christmas.”