Friday 22nd October 2021 - 08:37 (BST)
Figures released by The Office for National Statistics (ONS) have indicated UK retail sales unexpectedly fell by 0.2% over September, despite higher levels of panic buying due to potential supply chain shortages ahead of the all-important Christmas purchase season.
It marks the fifth consecutive monthly fall within the sector and also the longest period of contraction since records began in 1996. The main drag was household goods stores, particularly furniture and lighting, which saw a 9.3% fall over the month. Conversely, automotive fuel sales were up 2.9% and now sit above pre-pandemic purchase levels.
The number of online purchases also continued to push higher and now account for 28% of overall sales, significantly higher than the 19.7% in February 2020, as the shift to online looks set to remain.
Online retail made further in roads in key areas such as personal care, white goods and consumer electronics. According to GlobalData’s 2021 Q1 global consumer survey - when asked what the main advantages of purchasing items online versus visiting a store UK consumers listed convenience (64%), time-saving aspect (48%), minimal social contact (43%), variety and choice available (36%), and lower prices (32%) as key factors.
Elsewhere, new Bank of England chief economist Huw Pill has warned that UK inflation could reach “close to or slightly above 5%” early next year and increased the likelihood of an interest rate move by the bank during its November meeting.
