UK retail sales accelerate in October, BRC-KPMG finds

UK retail sales continued to strengthen in October, according to a closely followed survey, helped by a change in fortunes for the clothing trade.

Like-for-like sales increased 1.7% in October, the BRC-KPMG retail sales monitor report found, up from the 0.4% rise the month before.

Total sales stepped up to 2.4%, accelerating from the 1.3% rate in September and ahead of the three-month average of 1.1%.

Online non-food sales grew 11.1% in October, from 10.2% the prior month and the third highest growth this year.

In separate research earlier in the month, the BRC's data indicated shop price deflation remained almost flat at 1.7% year-on-year in October, from 1.8% in September and 2.0% in August.

The British Retail Consortium's chief executive Helen Dickinson said October’s figures painted a more positive picture of retail sales and confirmed there was a more balanced contribution from all product categories, with nearly all categories enjoying a degree of sales growth.

“It is clear from today’s figures, that despite the inflationary pressure that’s gradually building in the supply chain, retailers are currently effectively managing the additional cost burdens and continue to entice their customers with great choice and value,” Dickinson said.

Fashion bounced back as colder weather drew shoppers in to buy seasonal ranges, while electronics saw strong sales thanks to new product releases.

Jewellery and watch sales also went from strength to strength, pointed out KPMG's Paul Martin, which he suggested was due to "international shoppers are continuing to clock-in on favourable exchange rates before potential price hikes next year".

He added: “With retailers already a third of the way through the golden quarter, and Black Friday weekend and Christmas looming they will be hoping to maintain momentum by capturing the attention of shoppers in the noisiest time of year.”