UK retail sales fall 0.4% in September, more than expected

By Mucahithan Avcioglu

ISTANBUL (AA) - Retail sales volumes in the UK fell 0.4% month-on-month in September, exceeding market expectations of a 0.1% decline, according to official data released Friday.

The decline followed a revised 0.7% increase in August, previously estimated at 0.5%, the Office for National Statistics (ONS) said.

Online clothing retailers reported that unseasonably warm weather weighed on sales of autumn and winter collections, while supermarket sales also declined following gains in July and August.

Non-food store sales volumes fell 0.4% in September, with clothing and footwear retailers reporting lower footfall and consumers cutting back.

Household goods sales also weakened, largely reflecting a decline at hardware retailers.

Automotive fuel sales, however, rose despite continued increases in pump prices.

On an annual basis, overall retail sales volumes increased 0.8% in September.

Despite the monthly decline, sales volumes rose 0.7% in the third quarter compared with the previous three months, supported by recovering fuel sales and stronger food and beverage demand.

Fuel sales gradually recovered after falling in April, when retailers reported that motorists reduced journeys and delayed filling their tanks as prices rose.

Supermarkets recorded stronger sales in July and August, while beverage retailers attributed increased demand to promotions, warm weather and the World Cup.

Third-quarter retail sales volumes were 1.5% higher than a year earlier.

Meanwhile, online spending fell 0.4% month-on-month in September, with online sales accounting for 28.8% of total retail spending, down from 28.9% in August.

Mücahithan Avcıoğlu