UK retail sales rose more than expected in October, underpinned by spending on toys and clothes in the run-up to Christmas.
According to figures from the Office for National Statistics, retail sales were up 0.8% on the month, coming in ahead of expectations for a 0.5% increase and leaving sales 5.8% above pre-pandemic February 2020 levels. September’s sales figure was revised up from a 0.2% fall to flat.
Non-food store sales were the only major component to see month-on-month growth, of 4.2%, with second-hand sales making the biggest contribution. Within non-food, clothing sales jumped by 6.2%, with some retailers suggesting that early Christmas trading had boosted sales. The ONS said this was supported by analysis within the Coronavirus and social impacts release, which indicated that the most common items bought or pre-ordered earlier than usual for Christmas this year included toys and clothes, shoes or accessories.
Clothing stores sales are now just 0.5% below their pre-pandemic levels.
Meanwhile, “other” store sales, which include toy retailers, jumped 7.2%. Food store sales fell 0.3%, while petrol sales declined 6.4% in the wake of September’s panic-buying.
The retail sales figures came as the latest survey from GfK showed consumer confidence edged up in November despite the rising cost of living, although households’ view of their own finances remained weak.
The GfK consumer confidence index rose by three points to -14, reversing most of the four-point drop from the month before. Households were less gloomy about the general economic situation over the past 12 months and the coming year and were marginally more positive about their own finances for the coming year.
Danni Hewson, financial analyst at AJ Bell, said: “Consumers seem to have heeded warnings from some retailers that the best way to make sure they have exactly what they want under the tree this Christmas is to buy early. Santa’s sack this year will be filled with clothes, toys and games. It will also contain a substantial number of second-hand items, whether that’s a reaction to rising prices, to a glut of goods thanks to lockdown clear outs, or because people are thinking more sustainably, the result is the same.
“The prospect of festive mingling has pushed people to refresh their wardrobes. It’s no longer enough to make sure your fabulous from the waist up, the bottom half also needs some love. Clothing stores have enjoyed brisk trade through the month of October and in fact sales were only half a percentage point lower than they were pre-pandemic. But there will be a niggling fear that this boost will be short-lived, people can only spend their money once. Then there’s the lure of hospitality, after the constraints on socialising last Christmas lots of consumers will want to spend the next couple of months relaxing in a pub not rushing round a department store.”
