The Retailer Winter 2018/19

SEPTEMBER SUFFERS FROM SUMMER HANGOVER Covering the five weeks 26 August – 29 September 2018

• In September, UK retail sales decreased by 0.2% on a like-for-like basis from September 2017, when they had increased 1.9% from the preceding year. • On a total basis, sales increased 0.7% in September, against an increase of 2.3% in September 2017. This is the lowest since October, excluding Easter distortions, and below the 3-month and 12-month averages of 1.2% and 1.3% respectively. • Over the three months to September, In-store sales of Non-Food items declined 2.7% on a Total basis and 4.0% on a Like-for-like basis. This is in line with the 12-month Total average decline of 2.7%. • Over the three months to September, Food sales increased 2.3% on a like-for-like basis and 3.4% on a total basis. This is below the 12-month Total average growth of 3.7%. • Over the three-months to September, Non-Food retail sales in the UK decreased 1.6% on a like-for-like basis and 0.6% on a Total basis. This is in line with the 12-month Total average decrease of 0.5%. September Non-Food sales remained in decline.

• Online sales of Non-Food products grew 5.4% in September, against a growth of 10.7% in September 2017, the second- best growth of 2017. This is the lowest growth since January and below the 3-month and 12-month averages of 6.7% and 7.1% respectively. Online penetration rate increased from 22.7% to 24.2% in September 2018. Helen Dickinson OBE, Chief Executive, British Retail Consortium: “These figures lay bare the difficult operating environment for the retail industry. After a challenging August, constrained consumer spending in September has resulted in the weakest sales growth for five months. “Retail represents 5 per cent of the economy and pays almost 25 per cent of the business rates bill and this disproportionate cost burden is especially hard to bear given the current trend in sales. The effect can be seen in the fact that there have been 3,200 UK store closures in the past three years. “The Government has said it wants to “back business” and retailers are waiting to see if this is just talk or if there will be meaningful action - like a freeze in business rates in the Budget.”

the retailer | winter 2019 | 7