UK Retail sales decrease despite going into Christmas

UK retailers have been hit by a surprise 0.1% decrease in sales in October despite it traditionally signaling the start of Christmas period spending. City analysts had predicted a month-on-month increase because of large discounting by retailers to entice shoppers in.  The statistics show that this was the worst monthly sales value since April 2018.

The data shows that consumers were hesitant to spend leading up to the proposed October Brexit deadline with further reasons behind the decrease being the recent decrease in employment and wage growth which is steering people away from spending money on higher value items.

Capital Economics thought that clothing sales would increase in October due to the cold and wet weather, but in fact they decreased by 1% compared to September.

Sales fell in all retail sectors except food stores. Thomas Pugh an economist for the consultancy Capital Economics said: “In fact, the only bright spots were a 2% increase in department store sales volumes, which may have been helped by an early start to Christmas discounting. A 1.5% increase in fuel sales also helped increase the monthly figures. Excluding fuel, retail sales fell by an even sharper 0.3% month on month.”

How can we help

At Hawsons we have a dedicated team of retail and wholesale accountants at our offices in Sheffield, Doncaster, and Northampton. Our specialist team offers a wide range of services which are tailored to meet your individual needs. Our understanding of the issues faced by the retail, wholesale and e-commerce sector means that we can proactively seek out ways for you to maximise your profitability and minimise your tax liabilities.

If you would like to book your free initial meeting with us click here.

If you would like to find out more information about our retail and wholesale accountancy services click here.

More from our retail experts

You can find all of our latest retail sector news and newsletters here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.