UK retail sales hit hard by fuel shortages and rain

September saw the slowest retail sales growth since January, when the UK was in lockdown due to the Covid-19 outbreak, according to research from the BRC and KPMG.

On a total basis, sales increased by 0.6% against a growth of 5.6% in September 2020. This is below the three month average growth of 3.1% and the 12 month average growth of 9.8%.

September is traditionally a good time of the year for UK retailing as it’s back to school month.

But there are signs that consumer confidence is being hit by fuel shortages. Combined with wetter weather, this had an impact in the second half of the month, with a bigger effect on large purchases such as furniture and homeware. 

In-store purchases regained ground, and sales growth continued to strengthen for footwear and fashion, particularly formalwear with many workers returning to the office this autumn.

While online sales were down on the previous year, they remain significantly above pre-pandemic levels

“An uncertain backdrop and slower growth means the fourth quarter is looks challenging as the economic recovery is dependent on strong retail sales during the festive season,” says Helen Dickinson, Chief Executive, British Retail Consortium.

“Retailers, farmers and manufacturers are already making preparations to ensure enough food and festive gifts move through the supply chain in time for Christmas. Unfortunately, the lack of drivers is hindering these preparations and increasing costs, which will eventually be reflected in higher prices.”

She concludes: ‘Retailers are working hard to recruit and train thousands of new British drivers, but in the interim government needs to urgently extend its visa scheme to address the shortfall of 90,000 drivers.”

“Without swift action, customers face disruption and frustration this Christmas.”