UK retail sales rise but stores fear tax worries could hit festive period | Retail industry

According to the latest survey, hot weather and the UK’s interest rate cut off retail sales in August, but retailers, tax increases, speculation about the most important pre -Christmas process may be heavy for consumers during the pre -Christmas period.

Retail sales, consumer food and beverage expenditures increased by 3.1% annually, and the sales of computer and related equipment, parents prepared children for the new school year.

However, the British retail consortium (BRC), which publishes monthly figures with KPMG, said that the 4.7% increase in food and beverage expenditures caused by price increases unlike consumers who buy more products.

The report said that food inflation was directed at increasing prices between staples such as beef, chocolate and coffee.

And Information Processing – and Game – While continuing to show strong sales, parents who faced an expensive start to the new academic year returned to buy uniforms.

BRC, businesses are concerned about sales in the golden quarter, Christmas rise in the three -month important period, many retailer revenues trusted most of the income, he said.

“Sunny air and interest rate deduction helped to complete a solid sales article of August,” he said. “Despite a better summer, retailers are carefully approaching the golden quarter.

“As the budget after expected only days before an empty Friday, [discount sales]Many of them are restless about how consumer confidence and expenditures can be affected by tax increase speculation up to Christmas. “

Last week, Chancellor Rachel Reeves announced that the budget would be done later on November 26th.

Last month’s increase in sales increased by 2.5% in July, the hot weather and the British successful Euros football campaign and 3.1% in June.

In the last report, furniture sales, equipment, DIY products and garden vehicles such as household goods such as months after months of decline in the second month grew in a row.

In KPMG, Consumer, Retail and Entertainment President Linda Eldtt said: “In April, the sales of many household goods since the increase in property procedures before the stamp tax changes have been seen monthly increases.

“Home appliances, accessories and DIY and garden vehicles saw sales growth in August. New product launch increased mobile phone sales.”

In July and August, Samsung launched two models of the Galaxy Foldable phone and launched Google Pixel 10.

Total non -food sales increased by 1.8% last month, third -month increase in a row.

However, the report also found that the exchange confidence fell for the third month in a row in August, and many of them expect more food price inflation and other financial pressures.

Sarah Bradbury, General Manager of Grocery Distribution Institute, said, “The emotional weight of the increasing energy bills and tax hikes in the autumn budget contributes to the tension, especially as unemployment progresses upwards.

“Nevertheless, there are glare of relaxation: interest rates have been cut again and alleviating mortgages, offers some financial respite. Financially flexible shopping can be confident even when preparing for a challenging winter.”