High street sales rebound in September, BDO reveals

Retail sales on Britain’s high street rebounded in September as low inflation and wage growth supported consumer spending and shoppers stocked up on autumn fashions, a report revealed on Friday.

The BDO’s High Street Sales Tracker showed sales rose 2.8% in September from the same month a year ago, the best September gain since 2012.

The figures compared to weak August sales, which was the lowest level since the height of the 2008 financial crisis. BDO said September was boosted by consumers updating their wardrobes for autumn with fashion retailers enjoying the biggest rise in like-for-like sales since March last year, up 2.8%.

“Unpredictable weather, cheap deals abroad and fragmented discounting have combined to give stores a tough time this summer,” said Sophie Michael, head of retail and wholesale at BDO.

“But wages are improving and inflation returned to zero in September with little noise on interest rates, giving people back some of the spending power they lost during the financial crisis. Returning from the summer and settling back into routine combined with the first hints of winter at the beginning of September gave people the reason they needed to spend, and the sales uplift was immediate."

Lifestyle goods also experienced a 5.5% jump, driven by an increase in spending of giftware and stationary items.

Some retailers indicated the Rugby World Cup had helped to lift sales, BDO added.

The gain was offset slightly by a 1.9% like-for-like fall in homeware sales, such as furniture and DIY store items.

“With spending beginning to flow ahead of the Christmas Season, retailers should ensure their product and customer experience is set right to take their share of the consumer purse," Michael said.