The pound falls against the dollar as retail sales fall in September
Office for National Statistics (ONS) retail data showed on Thursday that in September 2023, retail sales volumes declined by 0.9% as the pound fell against the dollar.
Looking at the quarter, sales volumes dropped by 0.8% in the last three months.
In their September 2023 retail data report, ONS indicates that it looks like consumers are struggling against the cost of living crisis.
The ONS retail report further states that non-food store sales volumes decreased by 1.9% in September 2023, with retailers attributing the decline to ongoing cost of living pressures and unseasonably warm weather affecting autumn clothing sales.
According to Danni Hewson, head of financial analysis, “retail sales have fallen to the lowest level since February 2021, when the country was in the middle of the third national lockdown. Many stores had to keep their doors closed, and those that could open had strict social distancing measures in place. (square brackets) Fast forward a couple of years, and these numbers are particularly concerning for retailers because this isn’t February 2021; these numbers were for the month of October, when consumers traditionally begin their Christmas shopping.”
Further reports that in September 2023, total non-food store sales volumes, including department stores, clothing stores, household stores, and other non-food stores, decreased by 1.9%, contrasting with a 0.3% increase in August 2023.
Food stores experienced a 0.2% increase in sales volumes in September 2023, following a 1.4% rise in August 2023.
These include independent bakeries, Italian shops, butcheries, luxury brand stores, and luxury alcohol brands.
Within the non-food category, household goods stores reported a 2.3% decline in sales volumes, primarily attributed to decreases in furniture and lighting stores.
Non-store retailing, primarily online retailers, saw a 2.2% decrease in sales volumes in September 2023. They had previously dropped 0.9% in August.
Value and brand deals supermarkets “maintained a bit of growth, but specialty stores like butchers and artisan bakers saw trade drop off.”, Hewson said.
Danni Hewson adds, “The question at hand is: are we saving up our cash, squirrelling it away in order to make the most of those big promotional days like Black Friday, or have price pressures pushed people to rethink Christmas plans entirely?”.
Automotive fuel sales volumes rebounded by 0.8% in September 2023, showing a recovery from a 1.0% decline in August 2023.