UK retail sales slump after ‘bumper summer’

Retail sales figures hurt as consumers spend less on food as World Cup summer comes to an end.

Consumers spend less
Source: Bloomberg

In September, UK retail sales fell off following a summer heatwave and football World Cup that spurred a splurge in consumer spending, according to data from the Office of National Statistics (ONS) on Thursday.

In the three months to September, the amount of money spent on retail goods increased by 1.2% compared with the previous three months, with particularly strong sales growth in watches and jewellery stores.

Food sales slump

However, the strong growth seen over the summer period fell off with the quantity of goods declining by 0.8% compared to August, with the decline due to a significant fall in food shopping.

In fact, food stores sales saw a 1.5% fall in sales over in September – the largest decline since October 2015.

‘Retail continued to grow in the three months to September with jewellery shops and online stores seeing particularly strong sales,’ ONS Head of Retail Sales Rhian Murphy said.

‘This was despite a stark slowdown in food sales in September, following a bumper summer.’

The decline that UK retail sales experienced comes after the country witnessed one of the hottest summers in recorded history and its national football team reached the semi-finals of the FIFA World Cup, prompting a consumer spending splurge.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Find articles by analysts