UK retail sales growth slows amid consumer caution

UK retail and grocery sales showed subdued growth in September as consumers exercised caution ahead of the upcoming Autumn Budget and amid rising cost-of-living concerns. According to data from the British Retail Consortium (BRC) and KPMG, total retail sales increased by 1.3% year-on-year, a slowdown from the 2.3% growth seen in the previous year.

Food sales grew by 2.5%, while non-food sales remained largely flat at 0.3%. Within the grocery sector, NielsenIQ reported that total till sales at major supermarkets rose 1.4%. While shoppers made more frequent visits, the average spend per visit remained stable at approximately £18.58. Unseasonably warm weather influenced shopping patterns, keeping demand high for summer items like mineral water, soft drinks, and ice cream, while traditional autumn products like hot chocolate and soup saw declines.

Consumer card spending also saw its smallest uplift since early 2021, growing 1.8% year-on-year. Analysts noted that shoppers are becoming increasingly selective, prioritizing essential items and small indulgences—such as health and beauty products—while postponing larger discretionary purchases. Retailers have expressed concern that further tax rises in the upcoming Budget could pressure prices and impact employment.