UK Retailers record slowest sales growth since lockdowns ended – BDO

Published by

Sam Pither

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 per cent in August compared to the same month last year, while online sales fell by 0.6 per cent – 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."

"Consumers are deferring the purchase of big ticket items as households prioritise essential spend."

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 per cent in July – and, in turn, boost retail sales.

Sam Pither

Sam is the Regional Editor of Biz News, responsible for both Hampshire and Dorset. A new recruit to journalism, Sam started writing for the Business Magazine as a freelancer in May of 2022 after completing his degree in English at University College London. His passion for local businesses and ability to tell a story soon caught the attention of the publication’s management team and have led to his meteoric rise. Sam, who lives in central Reading, takes a particular interest in technology, gaming and food and drink, having been a chef before starting his degree.