Sales growth in the retail sector is at its slowest rate since Covid-19 lockdowns ended according to business consultancy BDO.
This concern is based upon a total like-for-like retail sales increase of 3.6 percent in August compared to the same month last year, while online sales fell by 0.6 percent – their first decline since March.
Sophie Michael, BDO’s Head of Retail, said: “September’s results will show just how significant the pull-back in discretionary spending is likely to be this winter but clearly these results in August show that consumers are cutting their budgets.”
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“Consumers are deferring the purchase of big ticket items as households prioritize essential spending.”
As reported by Reuters, Sophie also said that the slower sales growth of fashion and lifestyle items raises particular concern heading into the autumn and Christmas periods.
On the other hand, new Prime Minister Liz Truss’ plan to cap surging household energy prices should slow inflation – which hit 10.1 percent in July – and, in turn, boost retail sales.
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