Retail spending across the UK remained relatively weak in October as consumers postponed major purchases in anticipation of Black Friday promotions and Christmas offers. Big-ticket product categories, particularly furniture and household appliances, experienced subdued demand as shoppers waited for potential discounts in November, according to the British Retail Consortium (BRC).
However, the fashion and footwear segments recorded growth during the month. Demand for seasonal clothing and comfort-oriented household products, including duvets, improved as cooler temperatures and stormy weather signalled the arrival of autumn and winter trading conditions, according to KPMG.
Unfavourable weather conditions also supported online shopping, while sales of essential cupboard goods received a slight lift following government recommendations encouraging households to maintain emergency supplies.
Helen Dickinson, chief executive at the British Retail Consortium, said: “October was subdued for retailers, as shoppers delayed spending ahead of Black Friday and Christmas. Big ticket categories, such as furniture and white goods, performed badly as customers waited for November deals. Dreary weather meant online sales fared better, while cupboard staples saw a modest boost following Government advice for households to stock for emergencies. Halloween falling on a Saturday also helped drive spending on snacks, costumes and decorations.
“Retailers are hoping pent-up demand translates into stronger spending through November and December, as they work hard to deliver great choice and value for households this Christmas. But shoppers and businesses face mounting costs, including rising interest rates and energy bills, adding to the pressures already pushing up prices. Government must move faster to cut back the taxes and regulations making it harder for retailers to keep prices down.”
Fashion sales benefit from seasonal demand
Despite growth in selected product categories, overall retail sales expansion remained limited. Higher household expenses, uncertainty surrounding the upcoming Budget and consumers waiting for promotional events continued to influence purchasing decisions, KPMG reported.
Linda Ellett, UK head of consumer, retail and leisure at KPMG, highlighted the improvement in seasonal product demand, particularly across apparel and footwear.
She said: “Clothing and footwear purchases grew in October, along with cosy essentials like duvets, as temperatures lowered and storms finally blew in the start of autumn and winter season for retailers.
“But with consumers facing higher household costs, caution ahead of the Budget, and some waiting for Black Friday deals – overall sales growth was modest. Nonetheless, growth will be welcomed by a retail sector that desperately needs to offset cost increases with some strong sales as the promotional and festive season gets into full swing.”
The improvement in clothing and footwear sales offers some encouragement to fashion retailers preparing for the peak autumn-winter trading period. Nevertheless, the broader market continues to reflect cautious consumer behaviour, with promotional activity likely to play an important role in influencing purchasing decisions over the coming months.
Grocery spending shows signs of improvement
The grocery sector also experienced some positive movement in October, supported by seasonal occasions and household stockpiling. Half-term holidays and Halloween contributed to increased spending on food and related products, while government preparedness messaging may have encouraged some consumers to purchase additional household essentials.
Sarah Bradbury, chief executive officer at IGD, said: “Shopper confidence has been fluctuating around zero for some time, and that volatility looks set to continue. October brought some brighter signs for grocery sales, with half term and Halloween helping to drive spending, potentially supported by some households stocking up in response to the government’s Be Ready campaign. However, the underlying mood remains cautious. Uncertainty ahead of the Budget added to an already cautious mood in October, while shoppers remain pessimistic about their future finances. The prospect of higher energy costs, inflation and interest rates creates a challenging backdrop for 2027. Food and grocery promotions should help keep shoppers spending during the festive period, but we expect January to be a difficult month for many households.”
Retailers face a challenging festive trading period
The October performance highlights the continued pressure on UK retailers as they navigate cautious consumer sentiment, rising operating expenses and uncertainty over household finances. While seasonal demand has provided some support to clothing, footwear and grocery categories, the wider market has yet to demonstrate a significant recovery.
For fashion businesses, the coming promotional and festive season will be particularly important in converting delayed purchases into actual sales. Competitive pricing, attractive product offerings and effective inventory management could play a key role in maintaining demand.
The direction of UK retail spending trends during November and December will therefore be important for retailers seeking to balance promotional activity with profitability, particularly as consumers remain sensitive to prices and household cost pressures.
