Retail Sales Take a Hard Lurch in October
In October, the retail scene nosedived, slipping to the lowest figures since the pandemic‑year February of 2021. The Office for National Statistics (ONS) reported a 0.3% drop this month – the third‑week scenario. They also tweaked September’s decline from 0.9% to 1.1%, adding a bit of extra gloom to the timeline.
Because analysts from Pantheon Macroeconomics had bet on a modest 0.4% rise, the drop left many to wonder what went wrong.
What Actually Fell Apart?
- Food sales dipped 0.3% in October, a far worse fall than September’s slide.
- Non‑food stores saw a 0.2% decline this month – a much gentler pull than the 2.1% slump in September.
- Fuel sales hit a snag as rising prices scared off shoppers, while household goods and clothing stores felt the brunt of cost‑of‑living pressures and lousy weather.
- The silver lining? Online retailers were the only bright spot, recording growth in October.
Industry Voices
Heather Bovill, deputy director for surveys and economic indicators at the ONS, summed it up: “Retail sales fell again in October to their lowest level since February 2021 – when lockdowns were still a staple. After a brief rebound in September, fuel sales leaned back down, and food sales declined as shoppers focused on essentials.”
Aled Patchett, head of retail and consumer goods at Lloyds Bank, chimed in: “This dip reminds us that high living costs keep on hovering in consumers’ minds, even though headline inflation has eased a bit. Households still prioritize essentials, especially with winter temperatures dragging up energy use and sticky prices. Retailers will need to balance staffing and marketing without turning big sales nights into quiet lanes.”
What’s Next?
As winter ushers warmer shopping, many retailers might be looking to keep the lights on—keeping employees on the floor, planning sales events that feel rewarding without draining everyone’s wallet. All the while, online stores seem poised to keep tapping into the growing “click‑and‑carry” market.
