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UK retail sales fall by more than expected in September - Finance news and analysis from Global Banking & Finance Review
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UK retail sales fall by more than expected in September

Published by Global Banking & Finance Review

Posted on October 23, 2026

2 min read

· Last updated: October 23, 2026

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UK Retail Sales Decline Sharper Than Expected in September 2024

Analysis of September 2024 UK Retail Sales Data

Overview of Retail Sales Performance

LONDON, Oct 23 (Reuters) - British retail sales fell by a larger-than-expected 0.4% in September as a warm start to the autumn weighed on online clothing vendors and supermarkets also saw a drop in volumes, official figures showed on Friday.

Most economists polled by Reuters had forecast a drop of 0.1% drop in sales volumes compared with August.

Consumer Spending Trends

British shoppers have surprised analysts with the strength of their spending in recent months, even as the conflict in the Gulf pushes up fuel and domestic energy prices.

Retailer Performance and Profit Guidance

Britain's two biggest food retailers Tesco and Sainsbury's, fast-food chain Greggs and home improvement retailer Kingfisher all upgraded their annual profit guidance.

Statistical Insights and Economic Context

Quarterly and Monthly Sales Figures

Over the three months to September, total sales volumes were up by 0.7%, according to the Office for National Statistics which revised up monthly figures for August and July.

Challenges and Consumer Confidence

However, major retailers have recently highlighted the challenging conditions for consumers ahead of next week's budget announcement by finance minister John Healey and signs of more inflation pressure in 2027.

A survey published earlier on Friday showed consumer confidence in October suffered its sharpest month-on-month fall since early in the COVID-19 pandemic.

Fuel Sales and Additional Notes

The ONS said fuel sales volumes in September rose by 2.2% from August.

(Writing by William Schomberg; additional reporting by James Davey; editing by Sarah Young)

Key Takeaways

  • Month-on-month retail sales volume dropped 0.4%, exceeding the anticipated 0.1% decline reported by Reuters, highlighting softer-than-expected consumer demand. (moneyweek.com)
  • Over the three months to September, total retail volumes increased by 0.7% compared to the three months to June, signalling underlying resilience. (reddit.com)
  • Consumer confidence plunged in October, recording its steepest monthly drop since early-pandemic levels, while fuel sales rose 2.2%, adding inflationary pressure ahead of Chancellor Healey’s Budget. (moneyweek.com)

References

Frequently Asked Questions

How much did UK retail sales fall in September?
UK retail sales dropped by 0.4% in September, according to official figures.
What factors contributed to the retail sales decline?
Warm autumn weather reduced demand for online clothing and supermarkets saw lower volumes.
Which sectors saw positive sales trends despite the overall decline?
Fuel sales volumes rose by 2.2% from August.
What does the outlook for UK consumers look like according to retailers?
Retailers warn of challenging conditions and falling consumer confidence ahead of the budget announcement.

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