The latest Office for National Statistics (ONS) retail sales bulletin shows overall retail sales, and online sales in particular, stumbled in October.
Combined High Street and online sales volumes – the amount we all bought – fell by -0.7% last month against September while sales values – the amount of money we actually spent – also fell by -0.6%.
October’s sales fall has come as an unwelcome surprise to some retailers, says the home delivery expert Parcelhero. Stores will be hoping Brits are over their Budget blues by Black Friday.
Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘The autumn fall in spending this October doesn’t bode well for the peak Christmas shopping season now getting underway. Combined High Street and online sales volumes fell by -0.7% last month against September, with clothing and footwear tumbling -3.1%.
‘Non-store retailing, the category mostly comprising online sales, saw sales volumes fall by -0.2% and the amount of money we all spent online tumbled by -1.2% against September. Department stores’ online sales saw the biggest collapse: a whopping – 5.1%
‘The ONS says retailers put some of the blame on uncertainty around the Budget announcement (which took place on 30 October). However, stores also acknowledged low consumer confidence. With these figures in mind, the vastly extended Black Friday sales period this month (which seemed to start from the beginning of November online!) comes as no surprise. Stores and online traders are desperately trying to entice consumers into spending their hard-earned cash once again in the run-up to Christmas.
‘Although October’s figures are not the start to the peak season retailers had been hoping for, there are some crumbs of comfort to be seen. Compared to the same month last year, sales volumes were actually up by 2.4%. Better still, online sales values rose by a hefty 5.0% over October 2023.
‘However, more retailers than ever will be putting their faith in a prolonged Black Friday sales period to finally kick off the Christmas sales surge. With the Budget behind us the question is: will shoppers seek to cheer themselves up by splashing out on pre-Christmas spending or will they tighten their belts in the wake of ongoing gloomy economic news? Black Friday’s results will shed light on this.
‘It’s those stores with a combined High Street and online offering that are most protected against unexpected events, such as rogue Budgets and the vagaries of the British weather. Parcelhero’s influential report “2030: Death of the High Street” has been discussed in Parliament. It reveals that retailers must develop an omnichannel approach, embracing both online and physical store sales.’
