UK retail sales increased by 0.8% in October, says ONS

Shoppers have started Christmas shopping early this year as sales at clothes stores came close to pre-pandemic levels - but online sales fell to lows not seen since the start of the crisis, official data revealed today.

The rush to get presents sorted in plenty of time helped push overall sales volumes up in October by 0.8 per cent - ending a five-month run of falling or flat volumes, according to the Office for National Statistics (ONS).

It was also above the figure in a Reuters poll of economists which had suggested a 0.5 per cent month-on-month increase. Last month's sales fall of 0.2 per cent between September and August was revised up to 0 per cent.

Officials said non-food stores were the only main retail sector to see a rise in sales volumes in the last month, with charity shops, auction houses, toy stores, sports equipment stores and clothes stores all up.

Clothes stores saw sales volumes up 6.2 per cent, with retailers suggesting early Christmas trading had boosted sales, with some customers keen to not miss out due to supply chain shortages hitting the industry. This meant clothes stores are now just 0.5 per cent below pre-pandemic levels recorded in February 2020, the ONS added.

Fuel sales fell back sharply last month by 6.4 per cent as they returned to more typical levels after panic buying in September. Food sales volumes fell by 0.3 per cent but remain above pre-pandemic levels by 3.4 per cent. 

Online sales dropped significantly to account for 27.3 per cent of overall sales in October. This meant the proportion of online sales was at its lowest level since March 2020 - although this remains well above the pre-pandemic level of 19.7 per cent recorded in February 2020. 

Experts said the early Christmas buying was 'probably spurred by concerns about item availability and a desire not to miss out on the festive season', and consumers still preferred shopping in-store for seven out of ten purchases. 

ONS chief economist Grant Fitzner said today: 'After five months of no growth, retail sales picked up in October. Although sales overall are above pre-pandemic levels, it remains a mixed picture. 

'Clothing, department stores and toy shop sales reported a boost this month, with clothing stores reaching their highest level since the start of the pandemic, with some retailers suggesting that early Christmas shopping helped to bolster trade.

'Fuel sales fell sharply on the month, as they returned to more typical levels following September's increase. Food and online sales also fell, although they remain above pre-pandemic levels.'

Analysing the figures, Helen Dickinson, chief executive of the British Retail Consortium, said: 'Retailers will be relieved by the improvement in sales as they enter the final straight in the run up to Christmas. 

'Footfall growth on UK streets is the highest among major EU economies, and this is clearly translating into consumer spend. Meanwhile online sales remain well above pre-pandemic levels as retailers ramp up their delivery and click-and-collect services. 

'There were big improvements in clothing and footwear sales, including formalwear, as social calendars filled up and the public became increasingly confident about going out. Furthermore, with Halloween heavily curtailed by the pandemic last year, October showed chocolates and children's costumes selling a treat as families made the most of the occasion. 

'While retailers are putting in a gargantuan effort to ensure that essential food and gifts are ready for Christmas, they continue to be dogged by ongoing challenges supply chain problems. 

'Labour shortages throughout the supply chains – from farms to distribution – are pushing up costs and creating some gaps on the shelves. Nonetheless, retailers are prioritising Christmas essentials, and many have laid out their festive offerings a little earlier to ensure everyone has time to buy treats and decorations before the big day. 

'Retailers are hopeful that demand will continue right through the golden quarter, however, challenges remain, with higher prices looming and many households facing rising energy bills.'

Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown: 'There are signs Christmas has come early for retailers with many shoppers not waiting until Halloween was over before hitting stores, spooked by warnings that some gifts and toys could be in short supply this year.

'The data also seems to show the squeeze on incomes is already being felt with shoppers keen to sniff out a bargain in charity shops and on auction sites. Sales volumes in second hand goods stores accounted for a big chunk of the 7.2 per cent rise in volumes in other non-food stores.

'There was a fresh surge in clothing sales, which jumped 6.2 per cent over the month. It's little surprise that shoppers are prepared to splash more cash and ensure they get their hands on the latest styles given that people have been waiting to get the parties started for so long.

'Other ONS data shows that more staff have headed back to the office now – with half of businesses saying their workforces had returned to their normal place of work up from a third in early September.

'Plenty of employees clearly want to put their best foot forward when it comes to meeting colleagues once more so revamping work wardrobes also seems to have driven sales.'