UK retail sales extend slump

UK retail sales volumes dropped for a fifth month in a row during September, official data showed Friday, as the country suffers supply constraints and high prices.

Sales volumes dropped 0.2 per cent last month from August, the Office for National Statistics said in a statement revealing the longest retreat on record.

"Household goods were the main driver of... (September's) decline, with a fall of nearly 10 per cent," noted ONS economic statistics director Darren Morgan. "Despite the lifting of (lockdown) restrictions, in-store retail sales remain subdued, with many consumers still opting to shop online.

"Although sales of petrol surged in late September as drivers rushed to fill up their tanks, a UK fuel-shortage crisis likely meant consumers visited stores only for necessities, analysts said. "Whether the products aren't available, the price tag is too high, or shoppers have simply finished fettling with their home decor, non food sales pulled down September's figures," added AJ Bell financial analyst Danni Hewson.

 "Furniture stores have been warning for months that big ticket, big size items have been caught up in the shipping crisis and that seems to have worked its way through to consumer sales.  "The UK is facing delays to the shipping of goods owing to an acute shortage of lorry drivers.

Helen Dickinson, chief executive of the British Retail Consortium, said UK retailers will be concerned  "just as they begin their preparations for the all-important Christmas period" which last year was disrupted by a pandemic lockdown.