LONDON (Reuters) – British retailers’ sales growth has slowed at the slowest since the end of the COVID- 19 lockdown last year, business consultancy BDO said, as shoppers struggled with inflation as inflation soared. Tight Belt
Total same-store retail sales rose 3.6% in August from a year earlier, while online sales fell 0.6%, the first decline since March.
“September results will show how dramatic the pullback in discretionary spending this winter may be, but clearly these August results show consumers are cutting their budgets,” said Sophie Michael, head of retail at BDO Say.
“Consumers hold off on big-ticket purchases as households prioritize essential spending,” Michael said.
She said the slowdown in sales growth in fashion and lifestyle products was a cause for concern in the fall and Christmas period.
However, economists say high inflation in the UK (reached in July 10.1%) now looks likely to slow down.
