This September was the weakest for whole retail gross sales in seven years, excluding the pandemic interval.
Whole like-for-like gross sales within the discretionary retail classes fell -0.3%, in contrast with development of +3.1% in September 2025, based on knowledge from accountancy and enterprise advisory agency BDO.
On-line gross sales carried out “notably poorly”, the report stated, with a fall of -1.1% in comparison with development of +3.1% final September. It was the weakest September ever recorded exterior of the pandemic.
Retailers normally profit from a seasonal enhance in September resulting from back-to-school spending and customers refreshing their wardrobes for autumn, however neither development supplied an uplift this yr.
Sophie Michael, head of retail and wholesale at BDO, stated:
“These outcomes are deeply regarding and are available on the worst doable time for retailers. September ought to act as a springboard into the essential remaining months of the yr, however as a substitute we’re seeing shoppers rein in discretionary spending. The truth that even on-line gross sales have fallen exhibits simply how troublesome the buying and selling atmosphere is.
“Retailers are dealing with strain on a number of fronts. Prices of employment, provide chain and power proceed to rise and lots of will likely be apprehensive about additional enterprise charge rises introduced within the Price range.
“Households are dealing with one other winter of better monetary pressure as power payments chew and look set to rise additional. Excessive climate throughout the globe can be anticipated to position additional strain on meals costs within the months forward, inevitably taking a bigger proportion of client spend.
“The retail sector is getting into a very powerful buying and selling interval of the yr from an exceptionally fragile place. Retailers desperately want shoppers to loosen the purse strings this Christmas however are having to make troublesome selections on inventory ranges, staffing and funding with out visibility of whether or not client demand will materialise. Current CBI knowledge studies that retailers are reducing order volumes on the quickest charge since its Distributive Trades Survey started in 1983.
“Whereas companies might want to proceed to handle margins extremely rigorously, there’s solely a lot they’ll take up earlier than passing prices onto the patron.
“The Autumn Price range presents a crucial alternative for the federal government to help this struggling sector. Retailers urgently want measures that ease the rising value burden and provides companies the boldness to take a position. With out significant help, there’s a actual threat that extra retailers merely received’t have the ability to face up to the challenges forward.”
