Business Intelligence

OFFICE FOR NATIONAL STATISTICS

Food sales down

Office for National Statistics figures also reveal that online sales dropped to the lowest level since March 2020.

Food sales volumes fell by 0.3% in October, but remain 3.4% above pre-pandemic levels, new Office for National Statistics figures show.

In addition, the figures show that fuel sales fell by 6.4% in October as they returned to more typical levels after panic buying in September.

Online sales dropped to account for 27.3% of overall sales in October – the lowest since March 2020 – although still well above the pre-pandemic level of 19.7% recorded in February 2020.

In total retail sales rose by 0.8% in October, following no growth in September, the figures show.

ONS Chief Economist, Grant Fitzner, said: “After five months of no growth, retail sales picked up in October. Although sales overall are above pre-pandemic levels, it remains a mixed picture.

“Clothing, department stores and toy shop sales reported a boost this month, with clothing stores reaching their highest level since the start of the pandemic, with some retailers suggesting that early Christmas shopping helped to bolster trade.”

Richard Lim, Chief Executive of Retail Economics, added: “With consumers much more confident to dine out than last year, food retailers struggled to match last year’s levels.

“Looking forward, the consumer environment has deteriorated sharply over the last couple of months and the all-important Christmas boost needed for the industry currently hangs in the balance. Decade-high levels of inflation, the prospect of interest rate rises and growing concerns about personal finances may trigger some to tighten their grip on spending just when the sector needs it the most. Many retailers have battled to secure the goods they need for the vital trading period, so discounting will come as a last resort.”