Retail sales have fallen for the first time in three years, even if food remained the main driver of overall sales, the British Retail Consortium (BRC) has said.
Like-for-like sales in October compared to the same month last year dipped 2.2% while total sales dipped by 0.1%, the BRC revealed.
The BRC-KPMG Retail Sales Monitor said consumers are becoming increasingly price-conscious and are hunting out cheaper varieties of food.
BRC director general Stephen Robertson commented that these are “seriously poor numbers” given that the Christmas season is approaching.
He said: “The negative sales figures reflect record low consumer confidence. These are tough times for families and retailers, who are hoping the Bank of England’s bold interest rate cuts will provide a much-needed boost.”
KPMG head of retail Helen Dickinson added retailers will resort to heavy discounting in the next few months to try and pull consumers through the doors.
Yet consumers are beginning to put more effort into their grocery shopping and are also cooking more from scratch, IGD chief executive Joanne Denney-Finch said.
Annual food price inflation fell sharply in the last month, and stood at 7.5%, the BRC said last month.
