Spectre of no deal holds back spending.
Paul Martin, UK Head of Retail | KPMG
“Unsurprisingly September proved to be another difficult month for retailers, with like-for-like sales declining by 1.7 per cent compared to last year. Worryingly, even online sales moved closer to stalling, with growth of non-food online sales only 0.7 per cent.
“Ongoing Brexit uncertainty is clearly having a material impact on the consumer psyche, with all but one non-food category being in decline in September. Consumers are choosing to focus on the essentials, with food one of the few categories delivering growth.
“We will likely experience increased promotional activity to clear surplus stock, which doesn’t bear well for retailers desperately trying to make up for lost ground after several difficult months.
“Retailers’ focus needs to be on cost and efficiency with only the leanest and most efficient operations coping with this extreme test of endurance. October, and the ramping up of Brexit plans, will clearly be a real test for the industry as a whole.”
Helen Dickinson OBE, Chief Executive | British Retail Consortium
“With the spectre of a no-deal weighing increasingly on consumer purchasing decisions, it is no surprise that sales growth has once again fallen into the red. Many consumers held off from non-essential purchases, or shopped around for the bigger discounts, while the new autumn clothing ranges suffered from the warmer September weather. The longer-term prospect continues to be bleak, with the 12-month average once again plumbing new depths at a mere 0.2 per cent. Online non-food sales growth was the lowest on record, though still compared favourably to the decline in growth at physical stores.
“With four months of negative sales growth since March, the ongoing political gridlock surrounding Brexit is harming both consumers and retailers. Clarity is needed over our future trading relationship with our closest neighbours, and it is vitally important that Britain does not leave the EU without a deal.”
Food & Drink sector performance | Susan Barratt, CEO | IGD
“September seems to have seen something of a return to normality for the food and grocery market after the ups and downs of the summer. While taking a bit of a boost from some late seasonal weather at the beginning of the period, sales stabilised in modestly positive territory as the month progressed.
“While the Rugby World Cup offers only limited sales impact, retailers are looking to the succession of Autumn events - starting with Halloween - to drive more positive momentum as consumers begin to turn their minds toward Christmas.”
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