- Retail sales delivered a surprise jump of 0.5% in September and were up 0.9% in the three months to September
- Despite Budget uncertainty it’s the fourth consecutive monthly rise in sales volumes
- Record gold prices help boost sales for online jewellery retailers
Danni Hewson, AJ Bell head of financial analysis, comments on the latest UK retail sales figures:
“Despite all the doom and gloom surrounding the upcoming Budget, consumers have started to feel a little more confident with the pound in their pocket.
“The distinctly un-British summer weather gave people the opportunity to wear sport shorts and flowy dresses to the office and around the house, and in many cases that required actually adding those items to wardrobes.
“On top of this, the arrival of the Nintendo Switch 2, a host of must-play games released in 2025, and new handsets like the iPhone 17 have helped boost tech sales even ahead of this year’s massive discount events.
“The latest GfK consumer confidence survey suggests shoppers are socking away cash in order to splurge over the Black Friday weekend, even if that weekend will undoubtedly be coloured by any tax increases set to be announced in the Budget just a few days before.
“What is notable is how the rising gold price is filtering through to online jewellers, with sales of the shiny metal helping to boost non-store sales up to levels not seen since 2022.
“Interest rate cuts and above inflation pay increases have meant many workers have had a bit more cash to play with, even if pressures on household budgets have remained high. Concerns about the labour market and upcoming Budget have also been offset to a degree by cooler than expected inflation.
“For retailers, these figures should bring cautious optimism ahead of the sector’s most important shopping period.”
