Retail sales volumes declined 0.4% in September, but grew by 0.7% for Q3 2026, according to the latest data from the Office of National Statistics (ONS).
The ONS data shows that the summer heatwave helped sales of food and beverages in Q3. Fuel sales also rose following lower sales in Q2.
Online retail sales volumes fell in September; clothing retailers have indicated that this was because the ongoing warm weather reduced the usual demand for autumn clothing. Supermarket sales also fell after growth in July and August.
Retail experts commenting on the ONS data have said it shows signs of consumer spending holding up, despite the financial pressures businesses and households currently face. Nonetheless, as retailers head into the Golden Quarter, and with Black Friday on the horizon, it’s clear that consumers remain cautious and selective about their spending.
“The run-up to Christmas decides the year’s profits for many non-food retailers like fashion and consumer electronics,” said Hai-Ly Nguyen Hai-Ly Nguyen, associate partner at McKinsey & Company. “If shoppers buy less on each trip, competition for every basket will be tougher, and margins are already tight going in. We could see discounts start earlier or go deeper as retailers race for Black Friday and holiday baskets.”
Stephen Rogan, head of customer success, EMEA at Shopify, indicated that he expects a muted Black Friday. “ Perhaps the drop in sales is not as surprising when you consider over half (53%) of UK consumers report feeling negative economic impacts over the past year, according to Shopify’s Holiday Retail 2026 report,” he said.
Source link
