UK retailers show remarkable resilience as consumer landscape changes entirely

September saw a big improvement in UK retail sales growth, although sales over the last six months are still down on the previous year, according to research by the BRC and KPMG.

They increased by 6.1% in September on a like-for-like basis from September 2019, when they had decreased 1.3% from the preceding year.

“Tighter coronavirus restrictions have continued to hold back clothing and footwear, particularly as the government further restricts social events. With office workers still at home for foreseeable future, the sales of electronics, household goods and home office products have remained high,” says Helen Dickinson, Chief Executive at the British Retail Consortium.

“September sales have also given retailers early signs that consumers are starting their Christmas shopping earlier this year, which retailers are encouraging their customers to do in order to manage demand at Christmas and keep people safe. However, store-based sales, excluding food are still in double digit decline.”

Paul Martin, UK Head of Retail at KPMG, adds: “The resilience of British retailers has been nothing shy of remarkable in recent months, with 6.1% like-for-like growth in September serving to reinforce that.”

“That said, this month’s uptick is against the woeful performance recorded in September 2019 and so caution remains vital. Last year, the prospect of a no-deal Brexit loomed over purchasing decisions dampening demand, but now that same prospect is accompanied by the recent resurgence of Covid-19 numbers. Combined, these factors could have a significant impact on retail growth over the next months.”

“As we enter the all-important ‘golden quarter’ – when many retailers make the majority of their annual revenue – the fight for survival couldn’t be more intense. Close attention has to be paid to how players choose to tackle key events, like Black Friday, within a consumer landscape that has changed entirely,” he concludes.